Hospitality Provisions in Travel and Tourism Sector: A Detailed Report

This report examines the interrelationship between the hospitality and travel & tourism sectors, focusing on how hospitality businesses provide services to travelers and visitors, enhancing their experiences. It uses Marriott International as a case study to discuss the interconnections between the two sectors, highlighting how hospitality firms provide accommodation, food, and entertainment, while travel firms offer transportation and travel packages. The report delves into different types of integrations, such as horizontal and vertical integration, and analyzes their implications on the hospitality industry, including market share, profitability, and operational efficiencies. It also presents a rationale for a selected project and outlines a plan for a hospitality business, considering operational requirements. The analysis includes examples of package holidays and business travel, demonstrating how collaborations between hospitality and travel firms enhance customer satisfaction and business growth. The report also discusses the positive and negative impacts of integration on Marriott International, considering effects on employees, customers, and revenue.

HOSPITALITY
PROVISIONS IN
TRAVEL AND
TOURISM SECTOR

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Interrelationship between hospitality and travel & tourism businesses................................3
TASK 2............................................................................................................................................5
2.1 Analyse the implications of integration to the hospitality industry......................................5
2.2 Discuss how integration has affected a hospitality business.................................................7
TASK 3............................................................................................................................................9
3.1 Rationale for a selected project.............................................................................................9
3.2 Plan for a hospitality business.............................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality sector is the industry which provides food and accommodation services to the
travellers and visitors of other countries. These visitors are attracted by the destinations,
attractions etc. which are marketed by the tourism sector companies. The travel and tourism and
hospitality sector is interconnected in providing effective services to the visitors during their
journey in order to enhance their satisfaction and experience. The taken firm in this assessment
reports is Marriott international which is an UK based hospitality firm providing services such as
Food, accommodation, entertainment etc. to the visitors from other countries. This report will
discuss the interrelationship between the hospitality and travel and tourism sector along with the
different types of integrations and their impact on the selected hospitality business. Further this
report will also cover a rationale for a selected project along with a plan for a hospitality business
which includes the operational requirements of the business.
TASK 1
1.1 Interrelationship between hospitality and travel & tourism businesses
Hospitality businesses are formed for serving the visitors of travel and tourism sector
with services and facilities such as Wifi, entertainment, food, drinks, accommodation etc. so that
they can stay comfortably throughout their journey. The hospitality business firms provides these
facilities and services to the customers based on certain charge (Abubakar and Ilkan, 2016).
These customers are attracted by the travel firms by marketing the exotic locations, historical
monuments etc. The travel and tourism sector provides the transportation facilities and services
to the customers whereas the hospitality firms provides them a place to stay and sleep.
Hospitality businesses
The hospitality firms are fast growing business around the UK country which is
generating a lot of revenue for the nation. The hospitality sector is also responsible for improving
the brand image of the country in which the business operates. The hospitality firms are
providing a wide range of services such as luxury and budget hotels, restaurants, pubs, bars, food
services, etc. which plays a major role in ensuring the satisfaction of customers. For example:
The firm such as Marriott international is hospitality firm of UK which is providing different
facilities and services to the customers throughout their journey (Bharwani and Butt, 2012). This

company is providing food, accommodation, internet services, pool and entertainment facilities
etc. to the customers or visitors.
Travel and tourism businesses
On the other hand the travel and tourism sector firms provides transportations and travel
packages to the customers which includes the destinations to be visited, prices, timings etc. are
provided based on expectations and demands of the customers. The travel firms provides
business holidays and travel to the professionals people for ensuring their comfort during the
business meetings. These firms provides transportation facilities by land, air and sea based on the
comfort level and prices decided by customers (Boella and Goss-Turner, 2013). The travel firms
provides different service such as travel and tourism services for conferences and events, visit to
attractions, accommodation services, passenger transport etc. For example: Thomas cook which
is business firm of travel and tourism sector is providing different travel services to the
customers such as Foreign Exchange, International and Domestic Holidays, Visa, Passport,
Travel Insurance etc. for ensuring the comfort and satisfaction among customers.
Interrelation between the Hospitality and travel and tourism sector
There is a strong and better relationship among the business firms of tourism and
hospitality sector. Hospitality sector is essential aspect for the travel sector which provides
different types of services to the customers of travel firms such as entertainment, food and
accommodation. These services of the hospitality sector are essential for ensuring a smooth and
convenient journey of the visitors which are transported by the travel firms. These both sectors
needs assistance from each other for gaining high growth and success at the marketplace. The
hospitality firms provides hotels, villas and restaurants to the visitors based on their preferences
for staying during the journey (Boniface, Cooper and Cooper, 2016). These villas, restaurants
and hotels provides facilities such as transportation, beverages, food, staying, conduct the few
activities for relaxation etc. The hospitality sector provides the local restaurants and hotels to
customers for staying at a particular location. These both of the sectors are contributing their
maximum efforts for their success and growth along with the economic development. This
interrelation can be supported by using following examples:
Package Holidays: The hotels and restaurants are collaborating with the travel firms in
this world in order to attract more customers towards the services provided by them. The travel
firms add these hotel and restaurants in their travel packages which are provided to the customers

according to their needs and demands. Through this, the customers of travel firms can get the
hotel easily in a specific location having required services and facilities for their luxurious and
comfortable stay. The hotel get a charge or commission based on the number of customers
served by the hotel which is paid by travel firms. For example: TUI group is a travel and tourism
company who acquired the Magic life hotels in order to provide the both travel and
accommodation services to their customers. Through this merger, both of the firms can provide
the services accordingly for ensuring the satisfaction of customers. This enhanced satisfaction is
essential for both of the firms in achieving sustainability at the market place for a long period of
time (Proposed acquisition of Magic Life, 2011). TUI is providing the travel packages to the
customers based on their needs and demand to add the hotel or not which is improving the brand
image of the company too in the global market.
Business travel: The hotels and restaurants in UK are providing various types of facilities
of the people who are travelling for their business purposes. These facilities includes Wi-Fi
facility, business centres, internet, conference and meeting halls etc. through which the business
meetings and conferences can took place easily. Apart from this, the travel firms provides the
business class travelling seats and facilities to the business persons when they are travelling for
their business purposes. For example: British Airways is the flag bearer of UK providing airlines
and transportation services to the customers worldwide. The airline is collaborating with
different hotels of hospitality industry in order to provide the ease and comfort to the business
persons (Our hotel partners- British Airways, 2017). British Airways is providing best class
facilities to customers during the travelling as well as accommodate them in the different hotel
who are in collaboration with the British Airways such as AccorHotels, Agoda, Hyatt etc.
This interrelation among the hospitality and travel sector firms is very essential for both
the sectors in improving the quality of the services provided to the customers. Through the
improved services, these can attract more customers which will enhance the profitability and
productivity of the businesses.
TASK 2
2.1 Analyse the implications of integration to the hospitality industry
Integrations refers to the process of merging or acquiring other firms. The integration is
very useful for the business firms of hospitality sector as through this, they can improve the level

of their services which are provided to the customers. The integration can both positively or
negatively impact the business operations of the hospitality firms. Through the integration,
hospitality firms can enhance their market share, profitability and revenue so that companies can
sustain in the market for a long period of time. Integration is very useful for the hospitality firms
in using the resources and technology of the merged firms while operating the business
processes. The taken firm which is Marriott international is also integrated with some other firms
in order to utilise the shared resources and customers effectively. Marriott has followed the both
approaches of integration which are horizontal and vertical integration in integrating with other
firms. The two types of integration are as follows:
Horizontal integration: It is the process done by the firms for acquiring other firms of
similar industry in order to improve the level of existing services as well as to enhance the
market share. In this integration, the companies take over other firms who operates at same level
of value chain in the industry. Such type of integration is chosen by the firms for enhancing their
size, diversify product or services offerings, to achieve economies of scale, or to reduce the
competition in the industry. Such type of integration is proved useful for the hospitality firms in
producing more revenue as compared to compete independently. Also the companies can reduce
their costs by interchanging the technology, marketing, research and development (R&D),
production, and distribution etc. However, due to such type of integrations, companies has to
provide the training to the new employees of other firms so that they can effectively collaborate
and communicate regarding their working for bringing more efforts to achieve the organisational
goals. This training can be proved costly and time consuming for the businesses due to which
their profit get negatively impacted. Monopoly can also arises among the customers due to this
integration as competition will reduce which will also reduce the choices for customers. For
example: The Marriott international hotel has merged with Starwood Hotels & Resorts in 2016.
Through this merger, Marriott can provide their services in collaboration with the Star wood
hotels for ensuring the satisfaction and good experience of customers while staying in the hotel
(Acquisition of Star wood hotels, 2016).
Vertical integration: Vertical integration is the process of acquiring a company which is
operating in the production process of the same industry. Such type of integration is done by the
companies for strengthening their supply chain, reducing production costs, capturing upstream or
downstream profits, accessing new distribution channels etc. For this integration, it is essential

that the acquired company should be in the supply chain process. Such type of integration is very
beneficial for the hospitality firms as their customer base, level of services, profitability, sales
etc. will improve which will assist the firm in achieving the sustainability at the market place.
This integration does not only increase the profits but it will also guarantees regarding the
enhancement in efficiencies of the production process in order to eliminate the issues in delivery
and transportation. Through such merger, organisations can compete with large organisations
properly due to increased market share. However, due to such type of integration the employees
may feel dissatisfied in their working which can leads to reduced productivity and performance
of the company. This issue can be handled by the companies through the use of rewards and
punishment system which is provided to the customers based on their performances. For
example: The TUI merged with the Atlantica hotels which is a Cyprus-based hotel company
having 50 hotels in Cyprus, Greece and Egypt. Through this merger, TUI is effectively providing
their services to the customers in Cyprus, Greece and Egypt effectively as the Atlantica is the
only hotel chain in Cyprus. The profitability and productivity of the TUI is improving from this
merger (Expansion of TUI group, 2019).
2.2 Discuss how integration has affected a hospitality business
The integration has impacted the Marriott international in both positive and negative
manner. The Marriott international was merged with the Star Wood hotels in the year 2016
which had impacted the business operations and performance of the company in both positive
and negative manner in terms of employees, customers and revenue.
Positive impact
There are various positive aspects of this integration for the Marriott international which
are assisting the company in enhancing their performance and productivity at the market place.
The customer base of the company has increased after the integration which is simultaneously
improving the sales of company. The company is also providing their services to the untouched
markets after the integration. The productivity and profitability of the company are improving
rapidly which is beneficial for grasping more market share in the industry. Also the company is
using the resources and technology of the Star Woods hotel in performing the business
operations which is positively impacting the cost and profit margin of the company as well as the
cost of the company has reduced to a huge extent after the merger of Marriott with Star Wood
hotels. The company was able to cut off the competition in their industry through this merger as

the market share of the company has increased which is positively impacting the firm in
improving the brand image and for staying ahead of the competitors (Dei Mensah and Mensah,
2013). The supply chain of the Marriott has also improved following the merger which is
assisting the company in providing effective services to the customers of different countries. The
services provided by the Star Woods hotels as also improved due to the complete control of
Marriott on the business operations of other hotel.
Negative impact
Apart from the positive impact, there are several negative impact also of this merger
which is impacting the business operations of Marriott. The first negative impact is that the
company has to pay the predetermined amount of money to the Star woods hotels which is
specified in the merger agreement and this will impact the profitability and productivity of the
company. The employees of Star woods can become dissatisfied with the merger as they have to
modify their way of working as well as the workplace according to the new requirements
specified by the Marriott which can impact the sales and performance of Marriott in negative
manner (Evans, Stonehouse and Campbell, 2012). Also the Marriott has to provide the training
to such employees of Star Wood hotel for improving their morale which is cost and time
consuming process for the Marriott. The company also needs to provide the training to their own
employees too so that they can work in the new environment and culture for bringing their
maximum efforts. Another negative impact is that the capacity could not be balanced in the Star
Wood hotel which will create the dependency on them in accomplishing their desired goals and
objectives. Also the flexibility and effectiveness of the Marriott international in term of business
operations can reduce which will impact the firm in achieving the sustainability in the market.
For eliminating the negative impact, Marriott international has taken several measures so
that the consistency in the business operations can be maintained. The first measure is that the
company is providing the training opportunities to all the employees together i.e. Marriott and
Star woods hotel so that the extra cost can be reduced. For motivating the employees to improve
their morale and performance, management of the Marriott is providing them with rewards and
compensation benefits on the basis of their performance. The company is also monitoring the
business environment and market for determining the changes so as to adopt them in business
operations. The company is also using the branding for improving the brand image of both
companies in order to attract more customers.

TASK 3
3.1 Rationale for a selected project
Hospitality sector is growing at a rapid speed due to having a wide scope in their
services. The entrepreneurs can start a new business in this sector due to having opportunities of
improving the profit and sales. These new ventures of entrepreneurs includes fast food, cafes,
coffee shops, mainstream, fine dining etc. The rationale for the development of new restaurant
which is Fine dine is discussed below:
Stage 1: Development
1. Concept
General Idea: The idea behind starting this restaurant is to provide good quality based
food products to the customers of London in order to enhance their satisfaction and experience.
The chosen location for this restaurant is London as a large number of people travel to London
for their personal and professional purposes. This restaurant can be proved advantageous for the
entrepreneur as London is having rich culture, marvellous scenes, exotic locations etc. which
attracts the customers from different locations. This restaurant will provide food products and
recipes of different countries such as Italian, Indian, Thai and Mexican.
Objectives: The objective of Fine Dine is to enhance the satisfaction and experience of
the customers by serving them with the good quality based food products.
Vision: “To become a well known restaurant in the world by creating values for the
employees, owners and guests.”
2. Market Research
Importance: Market research is beneficial for the Fine Dine in determining the trends and
changes going on in the market as well as among the customers. This is essential for the
restaurant as they can provide the food products to customers accordingly in order to ensure their
satisfaction (Smith and Puczkó, 2014). The restaurant can determine the needs, requirements,
demands and taste of customers so that the restaurant can fulfil the needs of their customers
effectively.
Stages: Market research involve 5 stages which are:
 Definition of the problem
 Strategy development for resolving the issues
 Development of research design

 Collection of the data
 Report presentation
Area of research: The area of research is to identify the customers expectations from the
restaurant so that the strategies can be developed accordingly.
Research tools and methods: The research data for conducting the market research will
be collected by using the secondary data sources such as censuses, internet, media sources etc.
Primary secondary sources will not be used as the restaurant is new in market.
3. Target Market
Fine dine restaurant is targeting the middle and higher class people who prefers to visit
the UK for their personal and business purposes (Guttentag, 2015). The company is targeting the
customers who desires to get good quality food at affordable packages such as youth, travellers,
college groups, newly wedded couples etc.
3.2 Plan for a hospitality business
The business plan for the selected hospitality business is as follows:
Stage 1: Development
Location: The selected location for this restaurant is near London Eye as this place is full
of people from UK and other countries. Also a large number of people visit London due to the
famous attractions and landscapes. This location is easily accessible to the customers due to
located at central location.
Scale: This restaurant is medium sized firm which will provides different types of food
products to the customers such as Italian, Indian, Thai and Mexican. The restaurant will also
provides the services such as internet access, separate room for parties and family of customers,
AC rooms etc. to the customers for their comfort in taking the food. The restaurant is located in
two floor building in which one floor has balcony view of the London eye.
Funding: The restaurant has decided to collect the required funds from different sources
such as Bank loan, Angel investors, Mortgage loan providers etc. for gathering the funds
required for performing the business operations (Jaafar and et. al., 2011). Some of the funds will
be collected through these methods whereas remaining funds are provided by the entrepreneurs.
Products and services: The hotel is providing food products to the customers from
different countries. The food types and dishes are mainly from Italian, Indian, Thai and Mexican
flavours due to which restaurant can attract more number of customers.

Stage 2: Design
Ambience: The interior of the restaurant is decorated in order to attract the customers.
The main entrance is designed in shape of an Arc and the environment of the restaurant is well
lighted with colourful lights, soft music playing and fragranced (Roberts, Hall and Morag, 2017).
The exterior of the restaurant are also well lighted in order to provide a good experience to the
customers while entering in the restaurant.
Culture: The culture of the restaurant should be rich and healthy in order to ensure the
good experience and satisfaction of the customers in taking the services. The restaurant will
provide the food to different cultured people so culture should be accordingly managed by firm
(Morrison, 2013).
Brand: The restaurant should provide the good quality based products to customers in
order to achieve high brand image and reputation.
Stage 3: Operation
Staffing: The Fine Dine restaurant will hire the employees based on the requirements of
the operations and job profile of candidates. Also the restaurant will provide the suitable training
program to the employees for improving their capabilities and skills.
Compliance with legislation: The restaurant will also follows the laws and regulations
specified by the industry and the government of UK in order to avoid the penalty.
Promotional activities: The restaurant is going to use different promotional activities and
channels for promoting their hotel in the market. The company will use the social networking
sites, advertisement, print media etc. for attracting the customers as well as to make them aware
regarding the products of restaurant (Nunkoo, Gursoy and Ramkissoon, 2013).
Pricing strategies: The restaurant is going to use the economy pricing strategy in order to
sell their products to the customers at minimal and affordable prices.
CONCLUSION
It has been concluded from the above report that the hospitality and travel and tourism
sectors are interconnected and interdependent on each other in providing the effective services to
the customers. The companies can use the horizontal and vertical integration for improving their
market share and customer base along with the level of services provided by them to customers.
These integrations can impact the firms in both positive and negative manner which should be

considered by management during the merger or integration. The business organisations needs to
develop rationale and project plan for planning the activities to be performed in new projects.