An Analysis of Hospitality Provision in the Travel & Tourism Sector

This report examines the role of the hospitality industry within the broader travel and tourism sector, using Travelodge Hotel as a case study. It analyzes the interdependent relationship between hospitality and travel, highlighting the importance of accommodation, food, and other services for travelers. The report discusses the implications of industry integration, both vertical and horizontal, and its effects on service quality, competition, and globalization. It also explores how integration, particularly with information technology, has transformed the customer experience. Furthermore, the report includes a rationale and plan for The Keating Hotel, justifying decisions linked to a specific target market, and provides a conclusion summarizing the key findings and implications for the hospitality industry.

HOSPITALITY PROVISION IN
TRAVEL & TOURISM SECTOR

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1. The relationship between hospitality and wider travel and tourism businesses...................1
TASK 2............................................................................................................................................3
2.1. Analyse the implications of integrations of the hospitality industry....................................3
2.2 Discuss how integration has affected a hospitality industry.................................................5
TASK 3............................................................................................................................................6
3.1. Develop a rationale for The Keating Hotel clearly justifying decision linked to a target
market..........................................................................................................................................6
3.2. Develop a plan for The Keating hotel..................................................................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality and travel and tourism are the broad group that provides services to
customers. The majority of the business niches are composed of only a handful of different
businesses but this industry applies to nearly any company that is focused on customer
satisfaction and meeting leisurely needs instead of basic ones (Law and et.al., 2015). In this
present report, Travelodge Hotel is being chosen for assessment. This is private organisation
operating in the hotel and hospitality industry in United Kingdom. It is the third biggest hotel in
UK with 32600 room. Its headquarters are located in Thames, England and UK. The total
revenue of the hotel is £637.1 Million in 2017. This present report will make understand the role
and responsibility of the hospitality industry within the travel and tourism industry. In addition to
this, this study will also cover analyse the implications of integration and how it is affected the
hospitality business.
TASK 1
1.1. The relationship between hospitality and wider travel and tourism businesses.
Hospitality industry is the type of business where the guests are served by the host.
Hospitality industry has focus on providing optimum services to customers by providing them
entertainment, safe stay, healthy food, healthcare services and many more services. The main
area served by the hospitality industry are food & beverages, accommodation travel and tourism.
These are the most important areas which makes the hospitality industry complete. On the other
hand, travel and tourism industry is also one of the most essential industry for the economy. This
sector of travel and tourism has become one of the largest civilian industry across the world.
There are five major parts which are lodging operations, transpiration services, retail stores,
recreation food and beverage (Roberts, Hall and Morag, 2017).
The relationship between hospitality and wider travel and tourism businesses plays a
significant role in the economy. Both the industries are interdependent ion each other because as
without tourism industry there would be no hospitality industry. They both go hand in hand. All
the services like accommodation, transportation, recreation, leisure and food and beverages.
Tourism is the activity by the tourists or travellers are engaged in travelling to destination where
travellers want to experience activities of leisure and recreational. The hospitality industry is the
big tree under which there are huge number of small and sub industries are operating. The

journey of customers will only be comfortable with the help of hospitality industry. For example,
a person want to go India or any other places inside UK, he/she wants accommodation, food and
beverages for his/her comfort. Usually, industries of travel and tourism ties up with sub-sectors
of hospitality sector to provide the best services to customers or travellers. The main aim and
intention of the hospitality industry is to provide safe as well as enjoyable environment for
travellers. Both the industries has common goals which is to provide desire or expected services
to passengers (Zeng and Gerritsen, 2014). The hospitality industry is built upon the fact that as
travellers to different place need some rest to sleep, bath or any other activity. If there is no
accommodation facility people does not take initiative to travel or visit the particular place. The
services provided by both travel and tourism and hospitality industry is run for 24 hours.
In addition to this, hospitality industry is now not only run on large scale but it is suitable
for small or medium scale business. Big companies or organisation run hotels in different areas
to provide services to customers or travellers while small firms or families runs BnB inns at
various tourist destinations. They provide room or there house on rent to travellers. These BnB
are mostly present at the areas where there is less number of hotels or costly hotels. BnB inn
provides rooms at reasonable rates which is affordable for all the travellers. Further there are
now OYO rooms which are also giving huge satisfaction to the customers or travellers. OYO
rooms is a company who only consist of budget hotels. They tie up with hotels at various
destinations and provide services to travellers (Manhas and Tukamushaba, 2015). The goal of
these small and big hotels is to provide comfort to travellers when they need rest after travelling.
In both travel and tourism and hospitality industry, it is very important that they should
ensure as well as take care of both tangible and intangible services. Tangible services are those
where customer make payment and acquire the services whereas intangible services are those
which cannot be seen but it is feel inside the mind or heart of the people. Tangible services gives
the level of satisfaction which is totally different and it is very important in hospitality as well as
in travel and tourism industry. In intangible services, staff members of the organisation plays a
significant role.
Moreover, according to the data of 2017, £39.2 million overseas visitors visit United
Kingdom and they spent £24.5 billion. UK has scored sixth rank in the international tourist
arrivals league. 2.9% of people globally has arrived in United Kingdom in last two years. The

travel and tourism companies are providing very effective services which make people to visit
again. In 2016 about 92% of people visit again and they spend £14.1 billion in UK. In
Travelodge Hotel UK, more than 11000 customers visit every day (Zeng and Gerritsen, 2014).
From the above discussion, it is clear that hospitality industry is one of the integral part of
travel and tourism industry. It is nit right to commit that both the industries are interdependent on
each other but both these industries work hand in hand. Customers and visitors cannot be
satisfied if any services of travel and tourism and hospitality industry is missing. It is because
travellers not only needs services of good travelling but they need rooms to sleep, rest and bath,
food to eat and other entertainment activities. Customer or visitors visits the same destination
only with the expectation to achieve effective and comfortable services. The combination of the
services of both the industries. Moreover, when hotel or organisations of hospitality industries
make agreement or tie with travel and tourism companies, the services become more luxury and
comfortable for visitors as well as it is beneficial for both the organisation as there profit and
business increases to the great level. Thus, it is fact that the hospitality as well as the travel and
tourism industry have direct impact on each other’s business. A good hospitality aids to get good
image as well as it also aids to generate publicity with the word of mouth (Manhas and
Tukamushaba, 2015). This is the best way to get recognition for both the hotels and restaurants
along with the organisations in the travel and tourism business.
TASK 2
2.1. Analyse the implications of integrations of the hospitality industry
Hospitality industry is one of the famous and most popular industry for the economy. In
hospitality businesses it is very common that hotels, restaurants, bars, pubs, tour and travel
companies ties up with each other and provide efficient services to customers or visitors. The
level of satisfaction raises when visitors get all the services at single place instead of going to
different places. Thus, integration word is not new it is very common and known concept (Smith
and Puczkó, 2014).
Integration refers to the combination of one and more than one companies in such a
manner that it made a single large company. In order to provide the better services to customers
all the sub sectors of hospitality industry and travel and tourism work together in order to provide
the best services to visitors. Travelodge Hotel has also toe up with many sub-sectors like taxi

booking, food and beverages (Cornelissen, 2017). For example- In 2007, Marriott International
Hotel has takeover the Starwood Hotels values at $12.2 billion. In 2015, A private equity
company Blackstone acquired Hilton Hotel for 26 Billion. Marriott Hotel also acquired Delta
Hotels & Resorts which is values for $57 million.
There are two types of integration which are
Vertical Integration- This is the type of integration where two and more than two
production companies are combines and work together. With the help of this type of integration
the cost of production is decreased for the company which in turn raises the efficiency of the
organisation.
Horizontal Integration- This is the type of integration where two companies which are
completely different from each other combined together to make a big organisation (Baum and
et.al., 2016). For example- In 2014, Hilton Hotel acquired Walt Disney World Resort which is
values at €92,202,465.
Here the implications of integration in hospitality sector or on Travelodge Hotel which are as
follows-
It is very essential that services provided by the hotels, restaurants should be same at each
and every places. It is because if it differs in quality than it will directly hit the image of the hotel
or organisation. For example, If travelogue or any other hotel tie up with other hotel in another
city or area. Thus, it is very important that the services should be same either it is small or big
hotel because it affects the name of the brand.
It is fact the integration is very fruitful for the organisation or Travelodge Hotel but it is
nit good for the community or small and medium scale organisation. It is because when
integration occurs, it does not only increase the profit and efficiency but it also raises the power
in the society (Stephenson, 2014). It might be sometime resulted in throwing the small and
medium organisation out of the industry or market.
In addition to this, globalization has very huge impact on the industry of hospitality and
travel and tourism. Globalization encourage organisations to expand there business at global
level. Global tourist brings more profit compare to the local tourists.

2.2 Discuss how integration has affected a hospitality industry.
Integration has the great impact on the function and operation of the hospitality industry
as well as tour and travel businesses and on Travelodge Hotel. It becomes very convenient for
the customers when organisations in hospitality industry integrate with each other. If any
travellers decide to visit any place, he/she will book each and every thing at single place. The
customers are highly satisfied with the integration which resulted in increasing the profit of the
company as they feel stress free of booking tickets, rooms, restaurants etc. as all these bookings
are done by any of the single company (Bowie and et.al., 2016).
In addition to this, in travel and tourism industry the integration of Information
technology industry has bought great change. Now with the advancement in technologies, it
becomes very easy for people to book ticket online, see and select the rooms of hotels, booking
the table of restaurants as well as make payment through online. Customers feel safe and secure
as they do not carry cash with them during the journey. With the help of internet, it is also
become very easy for travellers to get information about the destination and hotels. Map facility
is also now available which is also very easy for the visitors to track the location of any
destination, hotels, restaurants etc. In the era of modernisation, it is very important for
Travelodge Hotel and other organisations in hospitality as well as travel and tourism industry to
make there website and keep them updated because customers usually takes information about
the organisation from the company website (Mason, 2015).
Moreover, integration makes the services cost-effective for both Travelodge Hotel and
customers. Integration also increases the chances to expand there business in global level.
Integration also help in raising satisfaction of customers by minimum resources. In addition to
this, cost integration is also an important part of integration because vertical as well as horizontal
both have critical effects on the cost planning and expenses of Travelodge Hotel. The main
intention is to overcome the cost of offering as well as developing services by pulling the
resources (Xiang, Magnini and Fesenmaier, 2015). Thus, from the above discussion it is
identified that integration affects the hospitality industry or Travelodge and travel and tourism
industry in positive manner and it is also very beneficial for the customers and visitors.

TASK 3
3.1. Develop a rationale for The Keating Hotel clearly justifying decision linked to a target
market.
Hotel business is now becoming very popular and the biggest revenue generator of the
economy. It is not for only large scale operator but it can be open at small scale. The type of
business which is selected to open in hotel in San Diego, California. The name of the hotel is The
Keating. The hotel bought on operation in 2000 for $6 million. The operation of the hotel is on
medium scale which have the primary function is Accommodation and other services will also be
offered like restaurants of MERK brand. Hotel will have 35 room with luxury services. The fund
is invested to open the hotel is entirely personal money. The product life scale stage is on
declined stage. The potential target of the hotel will be wealthy people, business people and
middle lodged because these are the people who need hotel service frequently (Robinson,
Ruhanen and Breakey, 2016). The management of the hotel will target there potential customers
on the basis of location, price and exclusivity. The area of improvement of The Keating Hotel sis
to provide quality of services and communication channels and techniques within organisation.
The main purpose of helping the hotel is to set and fix there business in the market. The potential
advantage of the company is to get them out of the debts. The stakeholders of The Keating Hotel
will be benefited as owner will make money, management have less stress and better
communication, staff will focus on there job role and the most important customers will be
highly satisfied.
3.2. Develop a plan for The Keating hotel.
Plan of developing the business of hotel. There are few stages which needs to be follows for
developing the plan which are as follows-
Stage 1- Development
Idea- The idea of opening the hotel combined with the restaurant has come from the
emerging publicity of hotel business. The hotel will be open or setup at a tourist destination in
United Kingdom which is San Diego, California. The demand of the people is increasing day by
day because every year the number of visitors are increasing. The growth of this business is very
high in coming future. But the level of competition is very high as there are so many hotels
which are operating in the environment. The target customers are selected on the basis of there

income, attitude and behaviour as they can afford the services of The Keating Hotel. The purpose
of the business is to provide optimum satisfaction the customers (Leung, Xue and Bai, 2015).
Objectives- To provide the best services to customers and make them satisfied.
Vision- To open a standard hotel that will become number one hotel is San Diego,
California.
Initial Concept of the business- The initial concept of the business is to open medium
scale hotel combined with the restaurant.
Market Research- Market research is very important when any organisation is going to
establish its business in the market as it is very crucial in deciding the target market. This is first
practices before opening the hotel or any other businesses. With the help of market research, it
becomes easy to identify the target market. The targeted market for The Keating hotel will be
high income group, business people and middle lodge. The importance of market research are as
it increases the profit margin, better target audience and management of consumer and
satisfactory growth of business. The tools which is used in market research are survey and filling
questionnaire (Getz and Page, 2016).
Target Market- The target market was already discusses above as it will be wealthy
people, business people and middle lodged because these are the people who need hotel service
frequently. The Keating Hotel will provide holiday packages, discount offer for the people who
are regular customers. The segment includes the people of all the ages specially those people
who need luxury and comfortable services.
Location- As discussed earlier, the location of the Keating Hotel will be San Diego,
California. It is one the famous city in United State and it is on 6th rank in population.
Scale- The scale of organisation was also discussed above as it will have its operation on
middle scale. Hotel will have 35 rooms. The target market was also not very large, they will
target wealthy people, business class' people and middle lodged.
Funding- The funding of the Hotel will be taken from partially from the own money or
saving and it is partially acquired from the bank and other outside institutions.
Products and Services- The Keating Hotel will offer the product and services which are
as follows-
 35 full Air Conditioner Rooms.

 Best and healthy quality of food as well as variety of food will also be offered.
 Guide will also be there for tourists.
 The facility of convenience will also be provided such as taxi and other travels.
Licensing- There will be systematic and proper system of opening the hotel. All the
formalities will be followed to open the hotel in the city.
Stage 2
Design- This is the second stage where the design of hotel will be selected. Design wil
covers the overall look of the hotel such as interior, exterior, furniture, layouts, reception area of
both hotel and restaurant. The interior will be completely made up of wood and glass which will
be very attractive. The interiors will reflect the nature and environment greenery.
Ambience- This is another most important task which is the decoration and outfit of the
ambience. The entire hotel will be decorated in very attractive and pleasant way which give a
very beautiful impression on the mind of the customers or visitors. The lightning of the hotel and
restaurant is also very cool (Fahimi and et.al., 2018). Candle light decoration will also be there
which also attract visitors. Different types of lamps will also be hand in the restaurant which
look very beautiful.
Culture- The entire image or reputation of hotel will be very effective and innovative
which in turn reflect the entire culture of the organisation. It is very important that management
of The Keating Hotel will put there extra efforts on pubs and bars that depicts the modern
culture. In addition to this, the staff of entire hotel and restaurant also shows the culture of hotel
as it is very important that they behave in delegate manner.
Interior and Exterior- These both factors are the most important factor within the hotel
as it impact directly on the image of the hotel. It is fact that exterior and interior will give first
and last impression on the mind of the customers. The exterior of The Keating Hotel will be very
beautifully sculptured with the environmental theme and interior will also made-up-of wooden
material. Fish aquarium, corals will be there inside the furniture of the hotel.
Functional Areas- The Keating Hotel will put more efforts in order to interact with the
visitors or customers in very effective way. Hotel will also provide internet facilities to
customers for booking the rooms.

Stage 3
Operation- It is very essential part of The Keating Hotel form which the management
will achieve the stage of design and development. The main purpose of this stage is to achieve
the organisational goals and objectives. The management of hotel will set the benchmark,
prepared strategies and plans so that the desire goals will be achieved.
Recruitment- This is the most important function of the management of Hotel. It is the
duty and responsibility of human resource manager to hire skilled as well as knowledgable
workforce so that quality of services will be provided to visitors. In addition to this, it is also
very important that HR manager of The Keating hotel will plan and organize training and
development programmes in order to enhance the skills and knowledge of staff members.
Cultural Diversity- This is key element for the organisation to achieve the desire goals
and objectives. In order to make the working place healthy and effective it is very important that
Hotel management or top authorities will treat each and every employees equally and with
respect so that cultural diversity will be maintained within the organisation. It will be benefited
for both employees and visitors (Phillips and et.al., 2017).
Legislation- This is also one of the most important organisation should follows all the
laws and regulation set by government. The Keating hotel will also follow all the laws such as
employment laws, environment laws etc.
BUDGET
Expenses Amount
Expenses for obtaining the permits and license $2000
Fee of Registration of Business $1500
Cost of hiring Experts $750
Insurance $5000
Cost of acquiring facilities of Hotel $150000
Other expenses $11000
Expenses of interior and Exteriors $20000

Building the Hotel $1000000
Total $267750
CONCLUSION
The above report concluded that hospitality industry and travel and tourism industry have
the main aim to provide optimum level of satisfaction to the customers. This report also include
the interrelationship between hospitality and travel and tourism industry in very strategic way.
Moreover, this report also analyse the implications as well as the impact of integrations of the
hospitality industry. The development a plan for The Keating hotel was also prepared in this
study.
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