Hospitality Provisions in Travel and Tourism Sector Report

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HOSPITALITY PROVISIONS TRAVEL AND TOURISM IN THE SECTORE
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HOSPITALITY PROVISION IN THE TRAVEL AND TOURISM SECTOR
Table of Contents
Introduction......................................................................................................................................3
LO1 Understand the role of the hospitality industry within the travel and tourism sector.............3
1.1 Discuss the interrelationship between hospitality and wider travel and tourism business....3
LO2 Understand the impact of integration within the hospitality and travel and tourism industry 6
2.1 Analyze the implications of integration to the hospitality industry.......................................6
2.2 Discuss how integration has affected a hospitality business.................................................8
LO3 be able to plan the development of hospitality business.........................................................9
3.1 develop a rationale for a selected project clearly justifying decisions linked to target
market..........................................................................................................................................9
3.2 develop a plan for a hospitality business including the operational requirements of the
business organizational structure in relation to human resource allocation..............................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13
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Introduction
Travel and tourism and hospitality industries are one of the steady growing industries in the
recent time. The integration of the industry is very important in order to ensure their success and
build customer satisfaction. From the research works of Schuckert, Liu and Law,(2015), it is
found that travel and tourism companies do comparatively well when they have a partnership
with a renowned hospitality industry. The following assignment will further deal with the
importance of integration between the travel and tourism industry and the hospitality industry.
The importance of integration among the hospitality and travel and tourism industry will also be
discussed later.
There are some examples in the assignment in order to make the study more interesting and easy
to understand. One of the hotels taken in this assignment is Egerton House hotel, London.
Egerton House hotel is a five start hotel, rate by AA, which is a double-townhouse hotel situated
at Egerton Terrace off Brompton Road in the Knightsbridge area of London
(Zaitseva,Goncharova and Androsenko, 2016). It is one of the top hotels in the United Kingdom
and its service is rated among one of the best in the country. The Tripadvisor.com has also rated
it in the top 10 best-reviewed hotel within London. The hotel has won a number of awards and
accolades for its supreme service (TripAdvisor, 2015).
LO1 Understand the role of the hospitality industry within the travel and tourism sector
1.1 Discuss the interrelationship between hospitality and wider travel and tourism business
Scale and scope
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Hospitality may be defined as the way through which the provider of the service takes care of the
customers. This hospitality sector is a big business, which is further divided in small business
like hotels, transportations, restaurants etc. Thus, the sectors will provide various services like
accommodation, travelling, food etc. to the customers and try with their best ability to satisfy the
needs of the consumers. This is mainly because of the fact that a consumer will choose a hotel or
airline, which will provide them the best service.
According to Rauch et al., (2016) hospitality business has now turned into a global business,
which is being operated by both small and medium organizations. Therefore, the ultimate goal is
to provide the travelers with the comfort and make them satisfy by fulfilling their needs. The
range of hospitality business starts from localised and regionalised industry to multinational
companies, which has a deeper impact on the travel and tourism industry. In addition to this, it is
very much important for both the hospitality and travel and tourism industry to take care of both
the tangible and intangible services. Tangible services tend to include services such as hotel
room service and intangible service include such as separate payment made for extra comfort.
However, it should be noted that the staffs plays a crucial role in providing these types of
services to the customers.
In Egerton House Hotel in London, customers tend to have a better personal experience when
they visit the hotel for holiday purpose (Brandon-Jones et al., 2016). The staffs are very
courteous and friendly towards the customers and help the customers to have a hassle free check-
in formalities so that the visitors can enjoy their stay at the hotel. Further, it can be noted that
after check-in, their job ends at that point only but for Egerton House Hotel, it does not. They
tend to escort the visitors’ towards their rooms so that the comfort level of the customers are not
hampered and helps the visitors to get acquainted with all the equipments. Therefore, the Egerton
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House Hotel in London is trying their best to provide best services and is playing an important
role in creating a friendly atmosphere and being modest towards their customers.
1.2 Interrelationship between hospitality and wider travel and tourism business
In the words of Rauch et al., (2016) which states that hospitality sector has gained a lot of
importance and it helps in maintaining the needs of the tourists who travel from one place to the
other. The main aim of the customers is to provide satisfaction and meet their expectation
through maintaining certain standards. For instance, Egerton House Hotel in London is one of
the finest hotels, which are providing the much needed hotel service to the tourist and also
providing some special services which are acting as the standards that other hotels need to
maintain. This is increasing the personal experience of the tourist to a greater degree.
Figure 1: The tourism system
Source: (Casado-Díaz and Simón, 2016)
The above figure denotes the 'Travel industry figure" in which the Traveler creating system
depends upon the components which arouse individuals to travel, the goal alludes to the spot that
they tend to visit and the travel course is the course utilized for onwards and return journeys.
Leiper suggested about numerous elements, which influence every one of these structure squares
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of the framework. These elements might be human, social, legitimate, budgetary, political or
mechanical. Among these elements, neighborliness has a significant influence and is a major
factor for the framework. Neighborliness is one factor, which could spur individuals to go to
different places as vacationers and in addition, it can likewise turn into a factor, which would
make the voyagers to go back (Papargyropoulou et al., 2016). Thus, we can say that the tourism
and the travel industry business are influenced by several hospitality factors and services that the
hospitality units are providing to the customers. Neighborliness is one factor, which functions as
both Push, and Pull factor in the Leiper System.
The above discussion points the relationship between the hospitality business and travel and
tourism industry, which is an integral part and very much related with each other. This increases
the need of joint and collaborative work to satisfy the needs of the customers and make them
happy. It can be noted that a proper hospitality will ensure that the success is brought in within
the business by providing comfort and relaxing trip for the customers. This will further make the
tourist to revisit the hotel or the service provider when they are very much satisfied with the
service. It will all increase the recognition of the hotel among the tourists also (Brandon-Jones et
al., 2016).
LO2 Understand the impact of integration within the hospitality and travel and tourism
industry
2.1 Analyze the implications of integration to the hospitality industry
Integration is a process of combining two or more small units in order to create single large units.
Integration plays a vital role in travel and tourism industry as well as the hospitality industry
(Wang, et al., 2015). Both the industries consist of many sectors and departments under them,
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hence in order to provide the best services to the public it is important for them to work together
efficiently as a big unit. Horizontal and vertical are broadly two types of integration, which is
discussed below:
Horizontal Integration: It is a type of integration between two different entities that serve the
same or similar product or service, which come under the same management with the common
vision of providing the best customer service (Carriot, et al., 2015).
For instance, the integration between an airline industry and a hospitality industry is a type of
horizontal integration. Both the industries serve the similar goal of providing the best customer
service. The integration will benefit both the industries if the customers gets good service quality
in all the stages (Wang, et al., 2015). The integration will only prove to be successful when both
the airline and the hotel provide a quality service to the customer achieving maximum customer
satisfaction. An issue in the services in any level will affect the reputation of both the industry.
Sectors like travel and tourism and hospitality industries may achieve success only if they follow
an effective and efficient integration method.
Vertical Integration: It is a type of integration between the different stages of the supply chain
of an industry (Al-Fuqaha, et al., 2015). The method helps in the cost effectiveness of the firm
and also increases the efficiency of the company.
For instance, the supply chain management is a type of vertical integration. The type of
integration is on of the most effective and efficient way to deliver the best quality product or
service to the customers. Vertical integration is also helpful for a company as it also results in
cost reduction. There are numerous factors, which should be analysed and paid attention to while
delivering the product or service to the customers (Bilgihan, and Bujisic, 2015). The product or
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service should have a great deal of availability to the customers to meet the sudden demand. The
products must also be at the best quality while offering to the customers. For example, a
customer suddenly orders for a particular food in hotel then the hotel must deliver it on time. The
food not only must be available but also should be at the best quality. There should be a proper
storage facility to store the non-perishable items and there must be an availability of perishable
items all the time. Hence, a proper supply chain management can help the hotel to meet the
sudden demands of the customers.
2.2 Discuss how integration has affected a hospitality business
There has been a great positive impact of integration on the travel and tourism and hospitality
industry. Integration has brought about convenience and ease to the customers, which enhances
the customer satisfaction (Crawford, et al., 2015). For example, if a customer wants to travel to a
destination then integration of the travel and tourism industry help the customer to book airline
tickets, hotels and other facilities on behalf of the customer. The customer needs not to worry
about booking ticket and making other arrangements. This has been possible because of a
successful integration of various departments managed under one management team. The
successful and upgraded integration of the industry also delivers the bookings and ticket to the
customer via email or post. This enhances the convenience and ease of the customers due to
which the customer satisfaction improves.
The development of IT sectors and its integrations has been a huge success in the field of travel
and tourism (Hsu, 2015.). The advancement in technology has enabled customers to book airline
tickets as well as hotel room with the help of the internet from anywhere. The payment can also
be done online from any part of the world due to the integration of the banks and the travel and
tourism industry. The rooms in Egerton house hotel can also be pre-booked from the internet due
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to its integration with other hotel booking websites. The website of the hotel also provides the
facility to book rooms as well as make payments online. There are a number of rewards also
given to the customers for using their website (Chiang, 2018). This has enhanced the
convenience level of the custoemrs as they now can travel without carrying cash and with safety.
These integration processes helps the customer satisfaction enhance enormously.
LO3 Be able to plan the development of hospitality business
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target
market
The proposal here is to build a new luxurious capsule hotel, which will deal with providing
quality hospitality services to the domestic and international guests.
Idea: The purpose of the luxurious capsule hotel is to provide a luxurious hotel to the customers
at a pocket friendly way. The motto of the hotel will be to provide an extraordinary experience of
living in a capsule-like room while also providing other luxurious services. The main objective is
to provide maximum customer satisfaction to the guests for the reasonable price they pay. The
hotel will provide amenities like any other star hotels to the customers so that their stay can be
comfortable and pleasurable Since, the capsule rooms will not be very luxurious hence, we will
try to make other facilities like spa, restaurant, coffee shop, swimming pool, conference hall and
other such facilities with utmost luxury. There will be an information desk headed by a specific
department that will help the guests to provide all the necessary information for their excursions
and there also will be a feedback desk where customers can leave their feedbacks in order to help
us know about the weaknesses and strengths.
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Target Customer: The target audience for this hotel would be the one who are travelling alone,
couples and corporate guests who will spend most of their time outside the hotel and will come
to the hotel to avail some special services for relaxation and to have a good sleep.
Location: The hotel will be situated at the central area of the city London so that guests can have
all the travelling facilities near the hotel and the corporate guest can save some time for their
work. The central location will also help guests to locate the hotel easily.
Size of the business: Initially the plan is to set up a mid-cap hotel that will consist of around
10,000 capsule rooms with a spa, restaurant, swimming pool and a conference room. There will
be around 500 employees in total. The plan is to have an initial capital of 10,000,000 GBP.
Investment plan: The initial capital that will be required to establish the organisation will be
around 10,000,000 GBP, out of which 50% of the capital will be invested by the partners and the
rest will be borrowed from banks and other financial institution.
Licensing: The establishment of the hotel will take place after taking the necessary permissions
from the government. The legal matters will also be taken care of before opening the hotel. The
hotel will also strive for a ‘star’ status from the respective authorities like VisitEngland and AA
that will enhance the reputation of the business (Zaitseva,Goncharova and Androsenko, 2016).
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3.2 Develop a plan for a hospitality business including the operational requirements of the
business organizational structure in relation to human resource allocation
The most important aspect of a hotel is its quality of service and the interior infrastructure
(Ukuhor, et al., 2017). Since the hotel will be situated in the central area of London, the
infrastructure of the building will be beautifully made and it will be different from other
structures. The swimming pool and the spa will have a relaxing atmosphere with dim lights
providing extreme comfort and the Chinese restaurant will have an interior that will give an
essence of china. The hotel will have a luxurious interior. The interior will also be backed up by
the latest technologies, which will put a positive impression on the guests. The lobby area will
be designed exquisitely to give a good first impression to the guests. The designed will be
inclined towards technology. The capsule hotel is a unique concept of hospitality hence, the
interior and the facilities must consist of the most updated technologies. The rooms will be fully
air-conditioned with television and all the necessary facilities so that the guests can have a good
and unique experience.
The human resource of any organisation plays a vital role in the success of a business (Davis and
Walsh, 2016). Since the employees are the ones providing the services to the guest the hotel have
a distinct recruitment strategy. The staffing process will be paid the utmost attention as the staffs
play a huge role in delivering the services and gaining customer satisfaction. The staffs will be
recruited based on their educational and professional qualifications. There will be time-to-time
training sessions for the staffs. The hotel will be inclining towards recruiting young individuals
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due to their dynamic and enthusiastic attitude towards work. The specialized individuals will be
hired for special works and there will be no compromise in that. For instance, the Chinese
restaurant will hire chefs whom have mastery in Chinese food making. There will be a good
mixture of full time employees and part time employees in the hotel. We will also recruit under
graduate individuals for internship in order to provide training to them. The human resource
management department will be given the utmost attention. The HR department will take care of
all the recruitment procedures and the department will have strong and strict structure.
Conclusion
The hospitality and tours and travel industry is having a steady growth in the UK economy. Due
to the services provided by banks to provide funds for the establishment of new projects, there
has been a steady growth of the hospitality and tours and travel industry making it one of the
most prominent parts of the economy (Kim, Vogt and Knutson, 2015). The integration of many
other industries like the IT industry has enhanced the quality of service provided to the
customers (Wang, et al., 2015).
The assignment consists of the impacts, effects and importance of integration in the travel and
tourism and hospitality industry. The project also deals with relationship between the hospitality
and tourism and travel industry. There has also been a discussion on a rationale of building up a
new hospitality industry in the market. The procedures and plans for the business is also been
discussed.
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