Hospitality Provision in Travel and Tourism (HTM101)

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Hospitality Provision in Travel and Tourism

Contents
Introduction....................................................................................................................................3
Task 1............................................................................................................................................4
1.1 Discuss the interrelationship between hospitality and wider travel and tourism business...4
M1 Effective approach to research the role of hospitality industry in the travel and tourism
sector using appropriate methods.............................................................................................6
Task 2............................................................................................................................................7
2.1 analyze the implications of integration into the hospitality industry.....................................7
M2 Analyse the effects of integration in the hospitality sector...................................................9
2.2 Discuss how integration has affected a hospitality business.............................................10
D1 critically analyze both vertical and horizontal integration in the hospitality and similar
organizations and draw a conclusion on the impact based on synthesis of ideas..................11
Task 3..........................................................................................................................................12
3.1 develop a rationale for a selected project clearly justifying decisions linked to target
market (M3).............................................................................................................................12
3.2 develop a plan for a hospitality business including the operational requirements of the
business organizational structure in relation to human resource allocation (D2, D3)..............14
Conclusion...................................................................................................................................16
References..................................................................................................................................17

Introduction
Travel and tourism industry is one of the most profit generating industry in the world. It is
essential for a government and private institutes to define signify operations for tourist so that
they can anticipate effective gains. This report is all about provisions which created for
protecting the visitors. All legislation is essential to understanding by private organizations for an
effective and efficient outcome. This report is focused on Marriott International a famous
hospitality service provider in the UK. They have to understand the provisions created in the
travel and tourism industry for managing the flow of visitors in the UK. This assessment will be
going to cover the role of hospitality industry in the travel and tourism industry. It will be going to
cover the concept of integration within the industry. Moreover, a plan will be created for
developing a hospitality business.

Task 1
1.1 Discuss the interrelationship between hospitality and wider travel and tourism
business
Hospitality industry comprises all major hotels, restaurants, pubs etc. from which travelers can
gain a better and relief experience. Travel and tourism industry is wide in nature because it
confronts various elements like conference traveling, event traveling, different attractions at
destinations, passenger transport etc. Hotels have accommodated travelers from around the
world so that a better experience gets provided.
 Hospitality industry: Hospitality industry refers to all major hotels, restaurants which
add some ingredients to tourist towards a better and effective experience. The hospitality
industry is not limited to hotels but its nature is wide (Bethapudi, 2013). The scope of
hospitality industry is increasing day after day with the expansion of travel and tourism
industry. Hospitality industry includes 1 to 5-star hotels with breakfast services. Along
with this, restaurants are also being a part of hospitality industry with pubs, nightclubs,
and contract food service providers.
o Scope: The scope of hospitality industry is wider because it can incorporate
services with various elements of travel industry. Thus, the hospitality industry
can generate more and more profit with the assistance of these elements like
travel agencies, spas, wellness centers, and event management companies.
Thus, this makes the scope of the hospitality industry wide in the frame.
o Scale: The scale of operations of hospitality industry is maximizing day after day.
This is considered as a result of better services by travel and tourism providers.
They are providing the right accommodation to the right individual so that their
experience get maximize.
 Travel and tourism sector: This section of the tourism industry includes different
services provided by tourist providers. Travel and tourism industry comprises travel and
tourism services like creation of packages, provide detailed description of a location and
suggest suitable place to visit (Mok, et. al., 2013). Along with this, the services which get
provided define tourist properly which include the nature of the visit. This part comprises
type of traveling like a conference, an event with major places to visit.

o Scope: The scope of travel industry is broad because every day some new
attractions get underpin at different parts of the world. The scope of travel and
tourism industry is maximizing with relation to hospitality industry. Travel
agencies and providers provide appropriate accommodation and another sort of
activities to traveler which aligns with their desire. Hence, it enables in
maximizing the profit of a company to anticipate the effective outcome.
o Scale: The scaling of operations is growing up in the travel and tourism industry.
Currently, various travel agencies and operators are executing their activities for
various parts and locations of the world. They are also coordinating with the
hospitality industry so that a great experience render to the visitor. Like from past
few years, adventure, business tourism is exploring in the UK and many other
parts of the world. Thus, a proper accommodation, club party has arranged for a
traveler for maximizing their experience.
The interrelationship between the Hospitality industry with travel and tourism sector:
Hospitality sector is related with travel and tourism industry because it helps in underpinning
various services effectively to travelers. With the help of the hospitality industry, tour operators
and providers can properly accommodate their clients like business travelers, conference
traveler etc. Along with this, they also provide a guide which helps all visitors to visit locations
properly like heritage places, theme parks. Thus, a positive relationship and assessment of
things provide benefits to both industries for maximizing their operations.
Role of hospitality function in Marriott International: Hospitality function refers to the
services provided by them to clients. Marriott International is a famous hospitality business
executor of the world. The major role of hospitality functions is to maximize experience of the
client with effective services. In Marriott International, the first function of management is to
manage stock. Marriott International had managed the adequate stock of food and beverages
with instant delivery of quality food and beverages at any time. They had managed bookings
properly and align the system online with booking elements and tour operators to avoid
inconvenience for clients (Wright, 2018). They take limited bookings for such amount of rooms
they can provide to the traveler as per choice.

M1 Effective approach to research the role of hospitality industry in the travel and
tourism sector using appropriate methods
Hospitality industry plays an important role in the travel and tourism sector. This gets
understand with a secondary source of research method. The role of hospitality industry in
travel and tourism industry is described as follow:
 Hospitality industry plays an important role to manage flow of travelers from around the
world by providing accommodation (Wright, 2018). This has resulted to provide a better
and relief experience to all individual in an appropriate manner.
 The hospitality industry is helpful for managing essential services to visitors like lodging
and food whether they belong to any culture, group or caste of society.
 The hospitality industry is helpful for managing revisit of travelers to particular
destination by effective and quality standard services. Thus, a word of mouth promotion
also takes place which maximizes the wealth of such destination.

Task 2
2.1 analyze the implications of integration into the hospitality industry
Integration is a process of merger and acquisition of a business with another one. It is a kind of
partnership where one business aligns their operations with others for generating more revenue
and income. In hospitality industry, there are mainly two sorts of integration leads to taking
place:
 Horizontal Integration: It is a type of integration where one business acquires another
company with similar range of operations. Such kind of integration leads to taking place
with the single objective of monopolistic advantage to reduce competition within an
industry (Difference Between Horizontal and Vertical Integration, 2018). Horizontal
integration is identified as a type of business expansion strategy wherein a single unit
comprise another one for maximizing their revenue. In hospitality industry, vertical
integration leads to taking place when hotel acquires another hotel, pub acquires
another pub. Hence, such type of integration is identified as horizontal integration.
 Vertical Integration: Vertical integration is determined as a process for supply chain
maximization. This refers when one single unit acquires another sort of company for
boosting their operations and cut down the cost (Difference Between Horizontal and
Vertical Integration, 2018). This kind of integration leads to taking place when one
company or industry wants to acquire other supply chain process. Vertical integration
needs lesser amount of capital as compared with horizontal integration.
Marriott International is a famous hospitality service provider in the UK. They are currently
operating in maximum parts of the world. Thus, management of Marriott International needs
assessment of implications of horizontal and vertical integration so that company can evaluate
its benefits or drawbacks:
 One of a major implication of horizontal and vertical integration is reduction in
competition. Integrations reduce the number of major units at a market place which
boost sales.
 Integrations process also contributes to the maximization of economies of scale. Every
business contributes to the economy and it gets to explore different opportunities. Thus,

economies of scale maximize with ultimate response of industries. Job opportunities are
maximizing with such sort of element.
These are certain implications which analyzed with horizontal and vertical integration. With such
attributes, it is essential for Marriott to consider some famous integration examples which work
as a future reference for a hotel group. Marriott International has to focus on their own attribute
where they won six out of 3700 hotels of the world with a different property. Another example is
of IHG which owns nine out of 4600 hotels in the world and remove their ownership. Some more
examples are identified as follow (Vertical integration resurfaces in resorts, 2018):
 Mandarin Oriental Riviera Maya to a BlueBay Resort
 InterContinental Paraiso de la Bonita to a Zoetry Paraiso de la Bonita
 Le Meridien Cancun to a Sandos
 Hilton Cancun to an Iberostar
Such kind of integration provides certain implications for business. Marriott International
requires an understanding of the implications of integration on their operations. Following are
certain implications which reflected for Marriott International for beneficial execution of
operations:
 Integration is helpful for managing brand value of a company. They can present a better
brand value to their customers for maximizing their satisfaction level. Along with this, it
also provides benefits to travel industry with quality range of services for distinct sort of
travelers.
 Integration is helpful for making an industry globalized. Marriott International can
promote their business in different parts of the world with integration process. This
implies a positive outcome for the industry so that a suitable generation of revenue
become possible.

M2 Analyse the effects of integration in the hospitality sector.
The hospitality sector is wide and deals in different sort of services. With the help of integration,
the company becomes able to maximize their brand value and control price value of various sort
of services (Mills and Rosentraub, 2013). The major effects of integration in the hospitality
sector are described as following and need understanding by Marriott International:
 Integration directly reduces the independent business units. With integration either
company work under a superior business firm. Thus, a reduction in independent
association finds out which hinder the individual capability of companies.
 Hospitality business providers can easily increase their market share with integration.
Small hotels can merge their entity with other small firms so that they can proclaim
standardize services. This will be resulted as maximizing of market share in a relevant
manner.
 Integration has supported business firms to improvise their quality. With the cooperation
of two firms with one other and share of ability can promote the better and efficient
quality range of services.
Marriott International has to underpin all such effects of integration on their operations. This will
be going to assist them to maximize their market value and work as a dominant hospitality unit
around the world.

2.2 Discuss how integration has affected a hospitality business
The hotel industry is getting an increase with the support and cooperation of various efforts
done by them. Constant pressure has been analyzed from shareholders for a better return,
distribution of non-core assets and derives cash to unlock the expansion in a relevant manner.
Thus, many hospitality services providers are using the beneficial and effective strategy of
growth for generating more and more revenue (Cook, et. al., 2014). The method from which
companies are facilitating better revenue is integration. Hotel groups can use horizontal or
vertical integration for enhancing revenue and profit.
Marriott International will be going to identify the impact of integration on business. Thus, the
following are the certain major and critical influence of integration on a business:
 Fewer major organizations: One of the impacts of horizontal integration is fewer major
associations at a market place. Horizontal integration acquires small, medium and large
hotel groups within same industry line. Thus, it reduces the number of major business
firms which define less competitive hospitality industry. Thus, integration has limited the
number of business firms which influence association for getting a monopoly market.
Thus, it might influence the economy due to limited firm and choice pricing by a firm.
 Increase in market share: Another positive aspect of integration is increase of market
share. With the help of integration within the same industry or in a different industry,
company becomes able to explore themselves. Hence, it also works as a indicator which
enable in exploring the market share of a company in a keen competitive market world.
Marriott International is already using such approach which supported them in increasing
their market share. Thus, company is getting various opportunities to explore themselves
on a globalized level.
Integration has affected business in positive manner where management can ascertain other
firms and their abilities with resources. Marriott International is integrated with various other
hotel groups and undertakes their resources properly. This has supported them to derive a
positive outcome and generate more and more revenue. Along with this, they also want to
explore themselves in new section of the tour operator. For this, they are required to identify
major travel agencies with operators and integrate functions with them.

D1 critically analyze both vertical and horizontal integration in the hospitality and similar
organizations and draw a conclusion on the impact based on synthesis of ideas
According to the Hudson and Thal (2013), vertical integration is a process when a firm takes
over some other unit of business with a different stage of production. This integration is helpful
for hospitality business and identifies Thomas Cook as best example. They are providing flight
services, accommodation services, tour operation services etc. In the hospitality sector vertical
integration has major objective to strengthen the supply chain management system to boost the
service delivery process. Like in Thomas Cook, tour operators design the package and provide
accommodation to users in own hotel as well as use their own airline. This reduces the cost of
package and attracts maximum clients as well. Marriott International has to assess such aspect
and element properly so that they can use vertical integration in an appropriate and suitable
manner.
On the basis of Cook et. al (2014), horizontal integration is defined as a process when two firms
combine their operations with similar sort of production and products at same level. The major
objective of this process is to increase the size of a firm with high cost. Companies in the
Hospitality industry use this approach to eliminate the competition and enhance market share
(Vertical integration resurfaces in resorts, 2018). Some examples of this kind of integration are
Mandarin Oriental Riviera Maya, InterContinental Paraiso de la Bonita, and Hilton Cancun etc.
Marriott International is already engaged in this kind of integration with a clear motive to
establish Marriott as a brand name or second name of Hospitality industry.

Task 3
3.1 develop a rationale for a selected project clearly justifying decisions linked to target
market (M3)
The target market is a population to which company tries to influence for consuming their
product and services. Behind every project development, planning is essential so that all
activities and operations lead to take place in right and suitable direction (Kerzner and Kerzner,
2017). A project consists of three major stages on which companies have to maintain their
focus. The project which will be going to discuss for this assessment would be integration of
Marriott International in the field of the tour operator. Marriott International wants to open a tour
operating section for their clients to maximize their experience. The major reason to choose this
unit is to maximize profit due to the expansion of the travel and tourism industry. Marriott
International will be going to consider certain stages of project with which they can execute
activities properly:
 Development
 Design
 Operations
The decision for Marriott International which is associated with target market selection arises in
development. Hence, Marriott International has to first work on development stage for managing
and identifying their major target customers from around the world:
 Concept development is a major and crucial task before initiating a project (Farok and
MacNeil, 2018). Marriott International will be going to launch themselves as tour
providers so that they can manage their work in another streamline as well.
 Once the concept gets developed, company will be going to research about market. This
section includes the identification of customers with keen competitors. Marriott
International will be going to serve for every sort of customer and identify major
competitors like TUI group, Thomas Cook, Virgin group PLC etc.
 The selected target market for Marriott International will be different groups of society.
They are targeting especially to student groups by providing a package of adventure
trips, study trips etc.