Hospitality Provision in Travel and Tourism Sector Analysis

This report provides a comprehensive analysis of the hospitality industry's role within the travel and tourism sector. It begins by examining the scope and scale of hospitality globally, using the Hilton Hotel as a case study to illustrate the industry's functions. The report then delves into the integration of hospitality and travel and tourism businesses, exploring both vertical and horizontal integration strategies and their impacts. It analyzes how organizations respond to the consequences of integration, including the use of technology and changing customer expectations. Finally, the report develops a rationale for a new hospitality business, outlining its product-service concept, target market, location, operating model, and design, supported by a thorough market potential analysis. The report emphasizes the importance of integration and adaptation in the face of evolving market dynamics and customer demands.

Hospitality Provision in
Travel and Tourism
Sector

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
(A) Scope and scale of the hospitality industry within the travel and tourism sector with a
global perspective by together examining the role of hospitality function in Hilton Hotel...3
TASK 2............................................................................................................................................5
(A) Integration in hospitality and travel and tourism business...............................................5
(B) Impact of integration and the way organization decide to respond to the consequence of
integration...............................................................................................................................6
TASK 3............................................................................................................................................7
(A) Developing a rational for a new hospitality business outlining the product-service concept
................................................................................................................................................7
(B) Developing and producing a project proposal target market, location, operating model
(including staffing), and design based on a thorough market potential analysis with suitability
and acceptability criteria in mind...........................................................................................8
REFERENCES..............................................................................................................................11

INTRODUCTION
Both hospitality and tourism Hilton hotel and Cafe shop Sweet Pleasures makes a greater
contribution in the overall development of the economy of a nation where they both are currently
referred to be the most growing industrial sector. It is in lieu of the fact of globalisation where
both these industrial sectors are at a rising pace of evolution that is ultimately benefiting the
country to a great extent. However, both these industrial sectors are together integrated with one
other and are constantly thriving in this contemporary era of business (Bharwani and Mathews,
2012). It is mainly due a demanding outlook of both these industrial sectors where both tourism
and tourism are known to provide leisured services to their users. They are operating with a
foremost agenda of fulfilling the pertaining needs and demands of their clients and users that in
turn tends to satisfy them to a large extent and they resultant demand it more. The below report
has thereby focussed upon such incorporated agenda of hospitality organisations with that to the
business operations of travel and tourism. For which, it has together elected a renowned
hospitality based organisation of UK named Hilton Hotel that is famously known for its notable
services.
TASK 1
(A) Scope and scale of the hospitality industry within the travel and tourism sector with a global
perspective by together examining the role of hospitality function in Hilton Hotel
The term hospitality itself demonstrates about its nature and agenda of serving people by
taking care of their actual needs and demands as a way of satisfying them in the best possible
manner. It is where customer fulfilment is referred to be a foremost concern of all its affiliated
bodies where this industry is composed of some leading functional sections that involves hotels,
restaurants and transport amenities, etc., (Evans, Stonehouse and Campbell, 2012). The
composition of hospitality industry includes different types of hotels such as business hotels,
airports hotels and suites hotels along with this the composition of hotel is also includes various
types of transport, visitor and attractions all are interrelated each other. In this composition is
also includes various types of cab services which helps to enhance visitors experiences.
These sub sections are in turn referred to provide a composed service to the approaching number
of users by provisioning the facilities of accommodation, travelling and food to them. It however
requires an intense investigation for the same by which they can refer to make a primary
understanding of their actual needs and demands as per the recent market trends.

This is where the ongoing trend is apparent to impact upon the choices that will be made
by the users and is thus required to be addressed by the service providers. It will in turn meet out
their realistic agenda of satisfying the upcoming consumers (Brotherton, 2012). It is with a
similar consideration of the elected firm named Hilton Hotel over here where they are together
required to undertake analogous measures to fulfil the factual needs and demands of their clients
with a clear identification of it. It is where a consumer is evident to choose from the best
hospitality services they have been experienced till now. On whose basis, they will take further
decisions by together recommending the same to their friends and relatives.
On discoursing upon the industrial sector of travel and tour, these businesses are together
required to provision comfortable services to their clients and users who are referring to travel
with them. It is where the modern day customers are immensely referring to buy holiday
packages that in turn is providing a vital opportunity to these travels and tourism businesses to
further expand their services to a great extent (Lamsfus et.al., 2013). Due to which, they are now
associating with the services of accommodation and food provisioning as a way of fulfilling the
clause of their holiday packages that is mostly bound to involve all these amenities into it. This
in turn indicates a profitable scope of hospitality industries within the travel and tourism sectors
where they can together refer to work in partnerships with their integrated services for the
consumers.
This can be better interpreted by referring to a diagrammatic illustration of tourism
system that is also named as Leiper model-

(Sources: Tsiotsou and Goldsmith, 2012)
The above illustrated figure has depicted the system of tourism system where the tourists
generating regions usually depends upon those factors that in turn motivate the individual to
travel. Also, it's another factor namely the destination is referred to that place in which they
mostly tend to visit with the transit route region that is often used for forward and reverse
journey (Sigala, Christou and Gretzel, 2012). Leiper have hereby recommended that there exists
several such factors that in turn influences all these building blocks of this system. These are
generally human, legal, political, social, financial or technical, etc., into which hospitality is
always referred to play a crucial role.
It is where hospitality is composed of a major factor of motivation that duly encourages
the people to travel from one place to another as tourists where it can often convert into a
demotivating agent that discourage the tourists to travel back (Tsiotsou and Goldsmith, 2012). It
thereby proves that this particular business of travel and tourism is largely affected by the type
and nature of hospitality they are referring to provision their clients and users. It is where
hospitality is that considerate factor in travel and tourism that basically represents both Push and
Pull element in the constituted tourism system of Leiper model.
(Illustration 1: The tourism system

It is therefore from the above established fact that clearly outlines hospitality to be an
integral part of travel and tourism businesses. It is basically in agreement to the leading agenda
of both these industrial sectors, where both of it are required to satisfy their consumers with a
due fulfilment of their realistic needs and demands (Medlik, 2012). For this, they are required to
operate in a collaborative manner accompanied by a sense of cooperation towards each other. It
is where a proper hospitality will definitely assure the overall success of the travel and tourism
businesses who are mainly required to provide a comfortable and relaxed stay to their customers
during the holiday trips that is needed to be given with a considerable integration of travel and
tourism.
TASK 2
(A) Integration in hospitality and travel and tourism business
Integration is known as the combination of one or more activity in such a way which create a
large single entity (Evans, Stonehouse and Campbell, 2012). There are two type of integration
which have their own importance that is vertical and horizontal. These both are as discussed
below- Vertical integration: in vertical integration there are two or more stage of production
which combined together in respect to provide high quality services to their customer.
 Horizontal integration: In horizontal integration two different companies are combined
and work together which lead to decrease in cost of production cost and increase the sale
of the organization.
It is important for travel company and Hilton hotel to keep appropriate mix of both
vertical and horizontal for accomplishing success. For example, integration of the hotel and
coffee shop is known as horizontal integration (Standing, Tang-Taye and Boyer, 2014). In this
both are the organization of different industry which work together for fulfilling the needs and
wants of customer. There are different type of hotel and travel company who need to conduct
research before combining any kind of integration.
Emerging strategy
The coffee shop which is opened in Hilton hotels which named as “Sweet pleasure”. In
this the company using horizontal integration through which coffer shop and Hilton hotel both
worked as the with each other.
Development of vertical and horizontal integration

In the vertical integration the company both coffee shops and Hilton hotel both working
together and offering coffees to their customers in order to improve the quality of services and in
the horizontal integration the companies are working with together so they can decrease their
cost of production. The example of this integration is that brand portfolio in which they include
14 different brands of different market segment such as Conrad Hotels & Resorts, Hilton grand
holiday and Hilton Hotels & Resorts.
Chain of distribution
The chain of distribution includes various types of food suppliers and internet marketing
through which they gather more customers in its business.
Benefits to cafe and integration of major companies
The major benefits to cafe is that it helps to them for creating more customer's and along
with this working with Hilton hotel helps to them for creating more brand awareness.
Ownerships pattern
The ownership pattern is remains to public ownerships which helps to coffer shops and
hotel to expand their business with effective approach.
(B) Impact of integration and the way organization decide to respond to the consequence of
integration
There is a great impact of integration on the function of Hilton hotel and travel and
tourism sector. It makes way of working and other things more flexible and easy for the
customers. At a time when customer plan for vacant at any other destination, then it not needs to
worry about the booking hotel or airline ticket because this all type of facility is provided by
travel and tour company (Hsu, King and Buhalis, 2017). Further the tour company take all the
responsibility of tourist from picking up them from home till the stay and also about other
recreational things. This all things has become possible due to integration in which different
entities work together under one management. Along with this, by using advance level of
integration it becomes easy for customer to send other document and get tickets directly on email
without facing any problem.
Integration make customer stress free for everything such as booking tickets, transport
facility other accommodation etc. due to this reason they are ready to pay extra amount. With the

help of horizontal and vertical integration company increase the satisfaction level of its
customers which lead to factor of the organization success (Witt, Brooke and Buckley, 2013).
Apart from this, with the help IT integration travel and tour company bring great change in its
field of working. IT integration make easy for customer to book their tickets online and choose
online payment selection mode without any risk. Further through internet customer can get all
type of information on tour company website related to the accommodation facility provided by
hotel and destination information.
Tour company can also get review from its customer related to their experience and they
can bring necessary improvement according to their given feedback. The changing environment
encourage tour company to provide all necessary information on its website, so the customer
many not be cheated by the organizations (Link between tourism and hospitality, 2015). For this
purpose all information which is posted on website should be authentic and right otherwise it
impacts reputation of company. Along with this, customer may avoid booking ticket from that
particular websites. In modern, era there is high competition in market which make difficult for
particular company to survive in competitive market.
Due to this reason the organization need to used integration both vertically and
horizontally to achieve success in their field. However, it can be stated that travel and tourism
and hospitality is not exception but it need integration in order to achieve success. Further it also
assists in utilizing resources effectively and less wastage of time and money of both the
organization and customers (Hsu, King and Buhalis, 2017). Further, with the help of integration
company can easily enhance it customer base and can easily survive in competitive market.
Customer satisfaction is important for an organization, so integration play significant role in
fulfilling the needs and demand of its customer on time which enhance their satisfaction level
and retain them for a longer time period. The following are the impact of ownership of
Horizontal integration on the Coffee shops.
Public ownerships
The Hilton hotel and Sweet pleasure both are working together in public ownerships
with horizontal integration. This will create impact of organization performance and helps to
them for expanding their business. Along with this it also helps to them for gathering more
money.
Pricing polices

The pricing polices of company is based on the premium polices in which they charged to
higher amount from their customers. Working in the Hilton hotel assist cafe to make their
products more unique so they can charge to higher amount from their customers.
Among with this market integration is also helps to company to improve their economics
of scale and increases their marketing share in effective manner and their distribution channel is
also gets improved than some other factors.
The further impact f interaction of business are as follows
Reduction of independence :
The major impact which raise on the organization in lose its independence. By
integrated with other business, Hilton hotel may lose its independence as both firm have to work
together and need to take mutual decisions.
Economics of scale :
As per by working with each other this can helps to both business firm for gaining
economics scale. It is that scale in which organization divide their cost as increased in their
output (Hsu, King and Buhalis, 2017). So by integrated both firm their cost can be shared and
they enjoy more profit.
Increased market share:
By integrated with the coffee shop their market share is also increased. Through the
coffee shop, hotel able to gather more customer's in their business which helps to expand their
market share.
Standardization
By opening cafe in the Hotel helps to Sweet Pleasure to improving their quality and it
also helps to them for making more interaction with its customers. In this the company is also
reduces its dependability of other resources (Witt, Brooke and Buckley, 2013). The TQM
approach assist to organization for making their services quality more advances and different
from other sources.

TASK 3
(A) Developing a rational for a new hospitality business outlining the product-service concept
Hospitality industry is rising very rapidly throughout the world. To develop a new
business of hospitality prior strategies has to made regarding entry to this new business. This
sector is considered as a booming sector and includes higher growth opportunities. It’s a varied
industry and has a wide range of career growth opportunities. It is not that much difficult to enter
into this business as compared to others (Kerr, 2007). It is considered as a high paid job and
provides competitive salaries, incentives, bonuses etc. So this attracts large number of people to
enter in every day. If anyone wants to enter into this industry firstly business plan should be
properly written as these businesses require financial backing and should analyse market trends,
short-term and long-term goals. Initial funds should be considered in the starting and also
consider expansion plans. All the resources which needs to be utilized should be collected at the
starting of a new hospitality business. Considering the competitors before starting any business is
always a difficult task. Analysing what the customers are offering that you aren’t.
Diversification is a very important aspect as we need to continuously diversify our
products as well as services i.e. Entering into new markets or grow in a new direction. To
diversify into a new sector, a business has to adapt those products and services which will attract
a new group of customers. It has to add more and more features in a product or provision of
services to appeal different customer groups. Related products have to found out. When a
company diversify their line-up their focus is to remove the competitors from their way
(Williams, 2004). Market research is to be done before entering into a hotel business that what
are the needs and aspirations of people and what are their attitudes related to ambience, food,
accommodation, comfort etc. Before entering into a new hotel business they should consider the
location where business is to be started. Other markets needs to be targeted and analyse what
type of consumers can be attracted to our business. They can be offered special discounts or they
can make charity to some organizations, clubs etc. Customer as well as staff retention should be
a focus of any business.
Some critical success factors on which hospitality industry need to focus in respect of
product-service concept. Location is regarded as the most important critical success factor.
Although this industry is constantly changing in today’s era but still location is a very important
aspect. Business should focus on their quality management especially hotel industry. They

should maintain high quality standards which in turn gives customer satisfaction (Hilton Hotels,
2015). Customer satisfaction is very much important as an impressed and a satisfied consumer
can help in holding a good position among the competitors based on the services provided. It
should provide flexibility to the customers rather than inflexible set of policies and rules which
creates problems for the customers. If they would be flexible then they would be able to gain
good reputation in the industry. Therefore, various such factors needs to be considered before
entering into any business. Hilton hotel needs to analyse their products and services which they
will offer to their customers and properly train their staff members or employees so that
customer satisfaction can be achieved.
The Hilton hotel is belongs to hospitality industry. This organization is launching a coffee
shop in its business. The concepts of the business is based on this that they need to provide a
good coffee to those customers who appearing in the hotel (Hilton Hotels, 2015). Their target
customers are young people who like to drink coffee. Main reason of launching such type of
services in the hotel is provided some extra services along with their hotel so they can gain
customer's satisfaction.
(B) Developing and producing a project proposal target market, location, operating model
(including staffing), and design based on a thorough market potential analysis with
suitability and acceptability criteria in mind
It is on the basis of above strategy used i.e. Expansion strategy for the development and
growth of hospitality business. Organizations before starting their business needs to a market
investigation according to their expansion. A different team of employees should be appointed to
analyse the market in a detailed manner (March, Buhalis and Crotts, 2000). Target market is to
be recognised according to the needs and aspirations of individuals. Hilton hotels are a very
renowned chain of hotel industry and they need to focus basically on lifestyle, values, and
personality of the customers and they need to be targeted on the basis of age, gender and level of
income and services are provided accordingly. The customers who are young are more likely to
be targeted as they seek comfort, luxury as well as quality management and these hotels are very
much suitable for these type of customer group.

These hotels provide the best location with huge infrastructure and other facilities for the
customers. Location is considered as important part to attract more and more customers to enjoy
the facilities. These hotels need to be located at a place which remains crowded with the arrivals
of travellers (Uysal, 2012). Either it can be located along any beach or a sea view which can
largely attract the people more to enjoy these facilities or it can be located near any famous
tourist destination. It is a very large business setup due to its around 30000 luxurious rooms and
other facilities along with restaurants, pubs etc. which mainly targets the rich population. It
spreads over worldwide and that is why considered a major competitor of big brands in hotel
industry.
According to their proposed business plan in UK they require large amount of funding
from financial institutions of around $12-15 million that has to be repaid in instalments and
though this was considered a very popular hotel worldwide so they will be able to repay it.
Hilton hotels stand amongst the other hotels worldwide due to their architecture and design. It
provides a very attractive and pleasant ambience (Head and Lucas, 2004). Their rooms have been
constructed and designed in such a way that it gives a natural view of surrounding corners from
the balconies outside each room. They also offer product design assistance with an aim on cost
effectiveness. Its interior as well as outer texture are considered as an integral part to attract the
customers. Staffing is done on the basis of their qualifications and skills as well as experience in
the sector of hospitality industry. Various measures needs to be taken to retain the employees or
workforce in the organization.
Motivational methods needs to be adopted to encourage them in terms of rewards,
incentives, recognition etc. They have to comply with all the laws of the government and follow
them otherwise this will reduce their image in the eyes of the customers. They should also
consider work ethics so that employees know about the right or wrong (Nickson, 2007).
Recruitment should be done on the basis of their qualifications and whether they will be able to
handle the customers patiently or not. Operational procedures need to be taken care of. Products
as well as services are according to the specifications of the customer and if not they have to
excel in their products and services to satisfy the customers as customer satisfaction is the main
principle on which the hospitality industry runs. Therefore, hospitality industry works on
attracting more and more number of clients and customers to their new setup.

BUSINESS PLAN
Stage 1 - Development:
Concept – It is on discoursing upon a newly proposed concept of the coffee shop named Sweet
Pleasures in Hilton Hotel where it will tend to create a considerable sense of nostalgia in the
visitors. Herein, they are intending to serve almost all variety of coffees with some more sugary
delights in snacks such as chocolate pizza, sandwiches and buns, etc. This concept is with a
prime intent of fulfilling the most demanding trend among the youngsters who often crave for
such candied delights despite of not being in immense favour of sweetish foods. To balance this
perception, Sweet Pleasures will also serve some other variety of savoury foods.
Market research – This is to proceed towards a successful business plan where the concerned
bodies of Sweet Pleasures with a special context of its marketing personnels, etc., are firstly
required to carry out a thorough investigation of their market. It is with a fundamental sense of
interpreting the current prevalence of their market in terms of acknowledging any of their
existent competitors and their undertaken strategies, etc. However, they may together refer to
know about the current preferences of the consumers in their targeted marketplace to further
launch accordant products and services for them. Herein, the outcome of the research have
indicated a tremendous interest of the consumers in UK market to try new type of sweet dishes
with some inventive trait in it. This in turn reflected a huge scope for the business to proceed
towards a creative business with some profound strategies of innovation.
Target market – It is on the basis of above conducted investigation, a prompt market will be
chosen by Sweet Pleasures where at present, they have selected UK.
Location – Sweet Pleasures will be located in the UK branch of Hilton Hotel with a targeted set
of customers who will be the young business entrepreneurs who are mostly on their business
related visits and meetings, etc. Wherein, they can choose to visit Sweet Pleasures to meet their
business clients, etc.
Scale – It will be on the basis of their integrated work operations with Hilton Hotel that indicates
a huge range of their services.
Funding – Business capitalists to invest into their plan will be marked as one of their leading
source of funding where it will together refer to rely on short term loans from banks and other
financial institutes, etc.
Areas of funding Fund required

Geographical enlargement of area in hotel
premises
£2500
Elaboration of dining area £1000
Hiring personnel resources £500
Products and services – Sweet Pleasures will intend to serve almost all variety of coffee to the
consumers as per their choice with some more innovative sweet dishes and other bakery
products. Also, they will refer to include elementary savoury foods with a twist in its
provisioning.
Licensing – This will be done by following all legal and regulative standards of the industry
where the hired employees will be also trained to make a strict pursuance of the stipulated norms
(Jakada and Gambo, 2014). For adopting licensing in the hospitality industry organization need
to follow all guidelines from the UK licensing Act 2003.
Legal issues- Legal issues are also associated with the business. Such as to pay minimum wages
to employees and provide them safe and secure workplace environment. In many new business it
is found that all these legislations are avoided so firm need to keep aware regrading all these
requirements.
Stage 2 – Design:
Ambiance – This is mainly in order to create a sense of nostalgia in the consumer, the ambiance
of Sweet Pleasures will reflect a calm and soothing environment with soft music play. Also, its
wall be painted with multiple colors with pictures of year old music artists and the movies
pictured on them.
Interior – The interior of Sweet Pleasures will depict a contemporary theme to retain the
consumers for a considerable time period where they will be happy to spend more amount of
time over there.
Exterior – The external features of Sweet Pleasures will reflect a mix of both modern and
traditional depiction with more of a heritage outlook to equally fetch the interest of the
consumers along with the tourists.

Functional areas – The dining area will be the main operational area of Sweet Pleasures with a
live kitchen to help people perceive the food preparation where they can together customize it as
per their own taste.
Customer flows – The flow of customers that is mainly targeted by Sweet Pleasures is the young
business entrepreneurs, where they are together considering attracting large number of tourists
visiting the hotel by their projected structure.
Stage 3 – Operation:
Staffing by functional areas – Staffing will be done by some expertise professionals to hire the
best suitable candidates who are either having some sort of previous work experience in this field
or are freshers with a confident outlook to serve the consumers in the best possible way. Here in
the present business of Sweet Pleasures, operational staff will mainly include total 25 staff
members. This will include the stewards and bartenders along with a separate department for
food preparation involving professional cooks and specialized chefs etc., along with a team of
sales and marketing with 3 administrative bodies in the position of managers.
Specialist qualifications – This is to discourse upon the qualification of the specialists hired to
perform their jobs where the chefs and cooks must be professionally trained and must be expert
in at least 1 or 2 cuisines. Also, professional bakers will be hired to prepare the sugary dishes
where they must be also aware of the measures required to bake cake and pastries, etc. Along
with this they also need to have some academic qualification such as a master degree in hotel
management.
Staffing issues related to seasonality – This is to manage any staff related issues at the time of
peak seasonality when there are more number of tourists and visitors in the cafe. For which, part-
time and temporary set of workers will also be hired to competently perform their assigned jobs.
Cultural diversity and ways to deal with conflicts – This is in context to manage a diversified
culture at the workplace where employees from different background will be recruited by the HR
of Sweet Pleasures. This will not only aid the cafe to make an easy provision of goods to distinct
people visiting from different background but will also enhance their brand image where the
hired personnel's will be trained to effectively treat the customer coming from diversified culture.
By which, they will together learn to respect each others culture where in case of any disputed
concern among such diversified workforce, the HR of Sweet Pleasures will employ some
effective ways of conflict management.

CONCLUSION
The above report has summarised the provisioning of hospitality in tour and travel
organisations where both are largely interrelated to one other. It is where both hospitality and
tourism organisations are operating in similar industrial sector and are thus related to each other.
This report has comprised with three leading sections with a foremost unit to apprehend the role
of hospitality industry in the sector of travel and tourism with another part that has defined the
impact of consolidation within the hospitality by lastly reflecting a plan for the evolution of
hospitality business.

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