Development of Hospitality Businesses in Travel & Tourism Sector

This report examines the role of the hospitality industry within the travel and tourism sector, analyzing the interrelationships between hospitality and wider travel and tourism businesses. It explores the impact of integration within the hospitality industry, analyzing the implications of integration and discussing its effects on hospitality businesses like PKF Hotelexperts. Furthermore, the report develops a rationale for a selected hospitality project, justifying decisions linked to the target market, and creates a plan for a hospitality business, including operational requirements and organizational structure in relation to human resource allocation. The analysis covers both horizontal and vertical integration strategies, highlighting advantages and disadvantages, and concludes with insights into the future development of hospitality businesses within the evolving tourism landscape.

Unit 12 Hospitality Provision in Travel & Tourism Sector
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
LO1 Understand the role of the hospitality industry within the travel and tourism sector.............4
1.1 Discuss the interrelationships between hospitality and wider travel and tourism businesses...4
Task 2...............................................................................................................................................9
LO2 Understand the impact of integration within the hospitality industry.....................................9
2.1 Analyse the implications of integration to the hospitality industry.......................................9
2.2 Discuss how integration has affected a hospitality business................................................12
Task 3.............................................................................................................................................14
LO3 Be able to plan the development of hospitality businesses...................................................14
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target
market.........................................................................................................................................14
3.2 Develop a plan for a hospitality business including the operational requirements of the
business’ organizational structure in relation to human resource allocation.............................17
Conclusion.....................................................................................................................................21
References......................................................................................................................................22
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Introduction
The hospitality industry is growing like tourism industry which offers implementations and
integrations. The services in the tourism sector are improvised by the addition of hospitality
facility. The present work is constructed by considering the tourism requirement and hospitality
amenities to identify the relation of hospitality with tourism industry and effect of integration in
tourism. This work also targeted on requirements for new business setup and development plan
formation to carry forward the business target. This work also focuses on various business
opportunities, employee recruitment, and scale of operation with respect to the business
development.
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Task 1
1.1 Discuss the interrelationships between hospitality and wider travel and tourism
businesses
Title: Interrelationships between hospitality and tourism business
Date: 23 July 2018
Introduction:
Travel and tourism sector is an important segment for the development of the country
economy. Business strategy and development of both hospitality industry and tourism sector
are interconnected to each other in terms of exchanging services with providing base facility
like accommodation, entertainment, transportation, travel comfort to the visitors (Pablo, et. al.,
2017). Hospitality business relies on the development of tourism sector by generating the real
mean for tourist attraction.
Tour and Travel sector
Tour and travel sector involves service supply chain which enablesthe different service
provider to serve on a single platform. These service providers are retail travel agents, tour
operators, and ticket agencies that helping the formation of the travel plan. Tour and travel
service also provide passenger transportation and accommodation services to the visitors.
(Figure 1: Services in the tourism sector)
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(Source: By author)
Hospitality
Hospitality is a wide term deals in providing services to the customers in terms of generating
separate platform to serve their customers. Peoples prefer to avail hospitality services for
different causes depending on their needs and motivation. Different type of hospitality serving
sectors are as follows:
 Airlines: Hospitality facility of airlines is necessary for airline performance which
depends on seven different factors i.e. cost of travel, services in flight, boarding
arrangements, the crew inside the flight, aircraft, customer check-in timing and seat
reservation.
 Sports events: Hospitality arrangements are a basic need for arranging sports events in
terms of providing facilities to the guest like warm welcome at the reception, providing
a full-course meal, the arrangement of entertainments in free time etc.
 Business event: Hospitality services in a business event are important for maintaining
the relationship among business commodities. That can achieve through providing the
best hospitality to the companions by serving drinks, food, audio and visual
equipment’s, parking facilities, caretaker for normal works etc.
 Visitor’s attraction: Addition of hotels, the restaurant at the tourist preferable location
promotes hospitality business in terms of serving more visitors in a user-friendly way.
Hospitality at visitor attraction places generates more business opportunity and
employment among local peoples.
 Theme park: Theme based hospitality promotes the involvement of local peoples in
arranging lodging, dining, fast-food facility which open a new source of earning for a
small-scale business. The value of the local things and aspects increases with exposure
and customer attention.
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(Figure 2: Different sector of the hospitality industry)
(Source: Jobs, 2016)
The relationship between hospitality business and tourism sector:
Hospitality industry deals with services like hotel facility for accommodation, leisure services,
transportation, dining, restaurant etc. for the ease and convenience of the customers. The base
requirement of hospitality services is promoted by means of customer demands that directly or
indirectly supports travel and tourism needs of the visitors (Aureliano, et. al., 2017). PKF
Hotelexpertsare the market leader in the UK in terms of providing hospitality services to the
customers. Their functioning and revenue enhancement determine by the visitor's attraction
toward the tourist destination. Growth and development of tourism services motivate more
visitors to avail of the tourism services which in-tern regulate the hospitality business to create
comfort for the visitors. PKF Hotelexpertruns its own travel based consultancy and also work
in association with the different travel industry to promote the hospitality business and
generated more income from tour related leisure.
 Traveling needs:Traveling needs depends on visitors type and choices. This can be
fulfilled by arranging all the basic necessity of the visitors during the time of travel.
Hospitality services like accommodation and transportation are some necessity that can
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only be accomplished by maintaining hospitality services according to the need of visitors.
 Holliday packages: Services that incorporated in holiday packages are primarily
contain hospitality services to provide customer basic needs and generate revenue from
the services.Travel operators work in association with hospitality service provider in
order to implement and add features and services in traveler tourism plans. Travel
operators also make deal with hotel and transportation industry in terms of price for
generating benefit for both tour operator and hospitality service provider by means of
providing compassion. Hotel business also gain customers and more business
opportunity through working together with tour operators. This tremendous efforts of
tour operators and hospitality service provider emerge single platform for presenting
services to the customers. This particular aspect of tourism and hospitality business
produce ease and comfort for visitors in terms of searching and availing the required
tourism related product. The user can also access the services on the previous review
and experiences of the customers who already experienced the travel and hospitality
services. Logically, the tourism business in association with hospitality services
affectthe decision-making ability of customers and help the customer to understand the
basic needs during the time of travel.This kind of association adds value to the
proposed holiday packages and motivates visitors toward the availing the tourism
services. Both travel and hospitality services in sum involve supply chain of the service
provider. The dependency and involvement of supply chain within the service generate
business opportunity and employment for the local area peoples.The
opportunityforemploymentconsiders as one of the important sources for country
GDPenhancement.
 Marketing: Presentation of travel packages with the assimilation of hospitality
services produces a single platform for marketing for hospitality and tourism. This is a
cost-effective approach in which both the travel and hospitality industry get mutually
benefited.Marketing at single platform produces convenience for the customer
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Conclusion
This article analyses the relationships between the hospitality and travel business. Various
factors are analysed in this article. The tour sector describes first and then interrelated with the
hospitality. The hospitality business is nothing without the tourism business.
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Task 2
LO2 Understand the impact of integration within the hospitality industry
Executive summary: PKF Hotelexpertsis the market in a leader in serving hospitality services
worldwide. The current business competition between industries inspiresthe hospitality and
tourism industry in a way that can attract more customers towards using the service products. In
order to fulfill this demands company focusing on integration along with specified strategies and
functioning ability. Integration provides strength to the business and helps in enhancement of
company product sales. Mode of integration is segmented in two forms, i.e., vertical and
horizontal. The company can use this integration according to the implementations requirements
and value addition needs.
Introduction: Hospitality industry tries to focus on market demand and attainability of resources
for fulfilling that demands. Hospitality forms the base for integral management of the tourism
industry. Affective management of hospitality services in the of the hotel, restaurant,
condominium, guest houses etc. and transportation-related hospitality in airline, cruise, train,
travel buses etc. are some basic necessity to promote the business of hospitality and tourism.
This involves a service supply chain which requires timely integration to enlarge the business
work platform.
2.1 Analyse the implications of integration to the hospitality industry
Implications of integration to the hospitality industry are deals with various changes and
requirements that needs to enhance the business revenues. The core process of integration ink
Hotelexperts involves strong strategy and implementation ideas which can be able to improve the
rank of company brand name. One part of integration is performed through horizontal mode that
allows implementations and addition in service supply chain. On the other hand, internal service
performance can be implemented through the vertical mode of integration (Chen, et. al., 2017).
In order to analyze the integration in hospitality business following points is explained here in
details for improving the understanding of the integration concept.
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(Figure 3: Measures of integration)
(Source: By author)
Horizontal integration: Horizontal type describes multi-user involvement with dependency on
various service providers that are combined acting on a single public known platform. Horizontal
implementation of integration is performed within these service supply chain to facilitate the
customers in a better way. This particular type of integration offers small-scale business growth
in association with the known brand name. PKF Hotelexperts are always ready to find the
opportunity of integration that can help the industry in business enlargement and promotion on a
worldwide network. In order to achieve business enhancement target many other hotel industries
previously attempted integration process(hospitalitytech, 2018).Examples of the horizontal type
of integration are as follows:
 CarlsonRezidor Hotel group implemented brand name and change it to Radisson hotel
group in 2018.
 Arrived who is a hotel booking service provider implemented separate neighborhood
guide in 2017, for the convenience of the customers in searching hotels.
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Vertical integration:
Vertical integration allows partnership between two different organizations to exchange the
services within the organization. Examples of vertical integration are as follows (hospitalitytech,
2018):
 Choice hotels form an alliance with Sercotel hotels in 2018 for sharing their mobile
applications and books facilities.
 Amable hotels (Spain) sign partnership deal with Hotelogix in 2017 for increasing the
efficiency and performance of both hotel industries.
Vertical integration is subdivided into two modes of integration i.e., backward and forward type
of integration.
 Backward integration: In this type of integration company buy or takeover the other
company in order to enlarge its business network and providing more strength to the
business present status.
 Forward integration: This type of integration involves buying small business Retailer
Company for adding a new feature to the existing services.
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2.2 Discuss how integration has affected a hospitality business
Effect of integration in the hospitality business is described by evaluating its impact on business
development. The process also explains the necessity of integration within the business profile.
The value addition in business also has many difficult and issues with some disadvantages that
can affect the business revenue (Schoffstall, 2013). Considering the impact of integration in the
hospitality business, advantages and disadvantages are as follows:
Advantages of integration
Vertical integration Horizontal integration
The implementationprovides business
enlargement
Provide service enlargement by allowing
integration between tour operators.
Help industry in sustaining in the business
world
By horizontal integration, hospitality business
can serve faculties to the customer at large
scale.
Enhances overall company economic value Promotes small-scale business and directly or
indirectly enhances country GDP.
Promotes branding of the company by
enhancing its world raking
Enhances service standard
Branding amendsthe popularity of the industry
at a global level.
Help in gaining customer satisfaction by
providing services efficiently
Globalization attracts more customers to avail
of the hospitality service of the industry.
Both local community and hospitality business
related operators get mutually benefited with
horizontal integration
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