Interrelation and Integration: Hospitality and Tourism

This report delves into the dynamic relationship between the hospitality and tourism sectors. It begins by exploring their interdependencies, highlighting how hospitality provides essential services like accommodation, food, and recreation, which directly support and enhance the travel experience. The report then analyzes various integration strategies, such as vertical and horizontal integration, that companies employ to strengthen their market position and improve service delivery. Examples like Thomas Cook and TUI Group are used to illustrate these integrations. Furthermore, the report examines the implications of such integrations on the hospitality industry, including benefits like increased customer base and profitability. Finally, the report culminates in the development of a new business plan, integrating travel services with hospitality facilities, demonstrating an understanding of market trends and opportunities. This plan is designed to expand the travel and tourism business, showcasing strategic approaches for growth.

HOSPITALITY PROVISION
IN TRAVEL AND TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Interrelationship between hospitality industry and tourism sector.......................................1
TASK 2............................................................................................................................................4
2.1 Implication of integration to hospitality industry with travel and tourism sector.................4
2.2 Effect of integration on hospitality industry.........................................................................7
TASK 3............................................................................................................................................9
3.1 Rational for the new project in hospitality industry..............................................................9
3.2 Develop a new business plan................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
The travel and tourism industry is having a great scope of development in present
scenarios. Respective industry is having a great interrelationship with the hospitality sector
which is contributing in the growth of tourism sector to a large extent. Both the industries are
working in integration in order to develop a growing economy for nation. Both the sectors are
completing aspects of each other and sharing their huge customer base to deliver quality services
to them and provide a better experience of travelling and hospitality. Companies like Thomas
Cook, TUI group is aligned their services with various hospitality businesses like British
airways, EasyJet, different hotels like Stiendo group in order to develop a better overall
experience of travelling to visitors.
In the present report, the diversity of inhospitality industry is discussed in relation with
the growth of tourism sector. Along with this, various integration approaches are discussed
which are followed in expansion of travel industry in marketplace. The students are provided
with an opportunity to develop a business proposal integrating the services of travel industry
along with hospitality facilities. The individual is able to evaluate market trends and
opportunities available in marketplace and defining various strategies to expand travel and
tourism business in nation.
TASK 1
1.1 Interrelationship between hospitality industry and tourism sector.
Magazine Article
Hospitality industry is working for welcoming the customers and providing them better quality
of services like food, accommodation facilities, and other recreational facilities, etc. Hospitality
sector is developing a friendly environment for the service users and providing a sociable and
inhospitable surroundings settings. This results in exploiting the sociability behaviour of
individual and developing a large network of people engaged with the hospitality industry.
There are many facilities provided to the customers of hospitality industry which help in
providing better experience with the business firm and develop a long term relationship with
customers. There are various businesses which are dealing with the hospitality industry in
marketplace and earning a large amount of profit by serving their clients responsibly and
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Magazine Article
cordially. Some of the businesses involved in this respective sector are like accommodation
facilities, food and beverages and various types of recreational operations for customers.
Inhospitality sector is providing accommodation facilities to customer through hotel including
family hotel, 5 star to 2 star hotels, resorts, private villas, motel, lounges etc. While the food and
beverages segment of the hospitality sector deliver their services through restaurants, cafe, bar,
mainstream and fine dining restaurants etc. A services user can enjoy their nights in pubs,
casinos, night parties, disco, events, conferences and theatres etc. which are working for the
hospitality industry in integration. All the service users of hospitality industry are engaged in
purchasing various services in order to accomplish their various needs and wants. This helps in
accomplishing different desires of persons related with food, accommodation and recreational
activities. This particular industry provides an exposure to the person in external environment.
All the businesses are making huge amount of profit by exploiting various needs and
preferences of customers. Working as per the needs of customers will contribute development
of customer loyalty relation with the services user and business serving to inhospitality industry.
Travel and tourism is having a wide scope in relation with developing various types of
services to the clients. This particular travel sector is also acting as a consultancy firm, making
arrangement for the tourists, delivering accommodation and transport facilities along with their
food and beverages arrangements. This also involves organising various conferences and events
for recreational activities for providing a wide range of services to the visitors and tourists. This
particular sector is engaged in serving their services to a wide range of destinations and
locations in all over the world. This particular industry is having a wide scope of development
and growth. This is the fastest growing industry in marketplace and making huge profit in
marketplace and contributing in country’s economy to a high extent. Various tour operating
firms are involved in delivering consultancy services and providing information to clients about
all travel arrangement and about accommodation as well as food facilities along with serving to
different destinations. Companies are providing travel services like making transport
arrangement or providing tour guides to the visitors. Some of the tourism businesses are
organising various events, parties and conferences in order to attract the interests of large
number of customers towards company’s services and making contribution in higher profit.
Companies are developing various holiday packages depending upon number of night and day
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Magazine Article
stays, number of visitors, packages for accommodation, transportation and food services,
honeymoon, for old age people or children. Also, these packages include recreational and
adventures activities and they are for students as well. The industry is delivering their focus on
quality of services along with managing the security of clients and implementing all
technological advancement in sector in order to deliver quality services to tourists and
developing healthy relationship with customers.
The hospitality services developed a great and significance in relation with the growth
and development of travel and tourism industry. The services delivered by the inhospitality
sector is having great contribution in profitability of tourism sector. Both the industry are
sharing their customer base with each other and engaged in delivering better quality services to
users in order to contribute in higher earnings for both the industries. The companies serving in
hospitality sector are working in integration with the travel sector firms which brings mutual
development of both the industries in marketplace. Like for instance the tour operating
companies are sharing their clients with the hotels and restaurant businesses by providing
holiday packages along with accommodation and food facilities. This helps in increasing
profitability of both enterprises. Like for an example the TUI group and Thomas cook
companies are using aviation facilities, transportation, accommodation services during
delivering their services along with hospitality packages for different destinations. The different
services of hospitality industry delivered with integration of travel and tourism services are
discussed below.
Like for instance there are different types of travel facilities given to the visitors
depending on their taste and preferences as well as purpose of the customers to make visitors
working along with hospitality industry. Like for instance the tour operating companies are
serving to the business travellers who are provided with different range of hospitality facilities
which are in budget and suitable for carrying out the business activities appropriately (Jaafar
and et. al., 2011). Service quality of hospitality industry contributes in the growth of travel and
tourism industry to a large extent. If quality and better services are provided by the hotel and
food industry then better experience of client will helps in developing good relationship with
clients.
The different services provided by hospitality industry like services in 5 star, 4 star and
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Magazine Article
3 star are provided to the customers of the travel and tourism companies depending upon their
choices and the purchased package. The companies like Thomas Cook is working in integration
with a wide range of accommodation facilities provided by resorts, hotels and defining different
range of prices for various facilities.
While the aviation services are also linked with the travelling industry as this plays an
important role for providing better experience to the client with travel and tourism industry and
the aviation services. The companies are working in integration and engaged in providing good
quality of hospitality services to the customers.
Travel and tourism companies are also linked with the business engaged in delivering
their services to food and beverages sector of hospitality industry in order to provide overall
better experience to the visitors in specific destination (Janta, 2011). The tour operating
companies are defining their packages on the basis of accommodation facilities along with
buffet services, breakfast or dinner facility. The companies are also providing some of the
special dinner settings for the couples or customers of honeymoon packages along with
providing some sort of drinks. This helps in increasing the brand loyalty of clients with the
tourism businesses.
There many type of services delivered tourism industry like conferences, theme parks
like Disney land, events, exhibitions are also integrated with the hospitality industry services
like accommodation and food facilities in order to give an complete exposure of the tourist
contributing in their satisfaction which are given by the travel company. This contribute in
developing a good relationship with the customers while working in integration with the travel
and tourism sector and hospitality industry.
TASK 2
2.1 Implication of integration to the hospitality industry
The integration of various sector is having great development history. As integration can
be defined as working in co-ordination or correlation with shared goals and objectives with other
business who is linked in terms of the operations, product or product line sector (Thomas Cook
and Co-Op Travel merger gets final approval, 2017). Like for instance the hospitality industry
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can be integrated with the services of travel and tourism sector as without the serving of
inhospitality facilities an individual cannot imagine having tourism services. The individual who
is planning to travel to specific destination is managed in availing various types of facilities and
services of hospitality sector like accommodation, food and beverages, aviation, transportation
and recreational facilities. So, integration of different sector can be profitable in terms of
expanding business in marketplace. There are two types of integration which can be followed in
practices of hospitality and travel sector which are vertical and horizontal integration.
Vertical Integration: This integration can be defined as working in linkage with the
companies or businesses dealing in the line of operational hierarchy of the firm. This integration
is implemented by the business firm in order to link the production line in operation and
contributing in developing uniformity and quality standards in the services (McCabe, 2010). The
various tour operating companies are vertically integrated with the services of the hospitality
industry like hotels, restaurants and the pubs, bars etc. The Thomas cook is integrated their
operations with the Asentido, Smartline and the Casa cook hotel in order to deliver quality
services to the visitors. One of the largest transaction made in the vertical integration in
marketplace is made by acquisition of Hilton hotel by Blackstone for 26 billion US dollars. In
2007 which was an equity firm. Another historical example of the vertical transaction in market
is intercontinental hotel group acquired the Kimpton hotel and restaurants for about 430 million
dollars.
Horizontal Integration: This integration can be defined as linking the various business
dealing in same sector or industry and having a common target customers. This is followed by
making alliances, acquisitions etc. in the marketplace to carry out horizontal integration in the
functions of firm. This particular horizontal integration is beneficial in developing a large
customer’s base by sharing the numbers of common services users. This particular approach
develops monopoly in the marketplace and contribute in decreasing the competition level in
operational market. The hospitality industry can integrate with the other business which are
providing their services to the common customer base (Xiang and Gretzel, 2010). The large
travel and tourism sector business firms are also integrating with the local tour operating firms in
order to expand the customer base and enhancing the profitability of the firm and expanding the
business in global market as well. Like for example the Thomas Cook Company is working in
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hierarchical integration with the Manos delivering services in Greek countries and with Air tours,
club 18-30 in order to expand the working area of the business firm.
The implication of vertical and horizontal integration in the marketplace provides various
benefits to the engaging industries. Like for an instance the travel and tourism industry is
benefited by following vertical integration with hospitality sector as this will helps in competing
with the large organisations confidently (Mensah and Dei Mensah, 2013). Another benefit of
integration to that of businesses is having manipulating in marketplace and control the needs and
trends of market. Along with this integration contribute in enhancing the globalisation of
respective business firms operating in travel and tourism and hospitality sector. While companies
should maintaining the branding and promoting policies in the marketplace effectively in order
to extract various benefits from the integration of respective industries.
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2.2 Effect of integration on hospitality business
The hospitality industry is affected by the integration with the firm working in hierarchy
of company or working with the companies dealing in same sector with shared customer base.
These affecting aspects can be fostering or restricting to the hospitality industry growth in
marketplace. Some of the aspects are described below which are influencing the integration of
hospitality industry.
Globalisation: The integration can enhance the globalisation of business in the
marketplace. Companies of the horizontal integration can expand their business by integrating
with various firms operating in different countries across the boundaries.
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Illustration 1: Structure of integration, 2017
Source 1: Integration, consolidation and concentration, 2017

Cost integration: This vertical and horizontal integration results in sharing of resources
and cost of within the alliances or acquired companies. This also benefits in the sharing of
various incurred cost in the production and leads to cost integration functions of merged firms.
Lack of knowledge: Integrations is having some of the benefits while this is also having
some drawbacks which negatively affect the development of business (Witt, Brooke and
Buckley, 2013). As acquisitions and mergers of the firm leads to working in correlation and
integration with other firms. Both the firms are having different working values and norms which
may be influenced by the others working. So, lack of knowledge about the other cultures and
beliefs can restrict the growth of integrating firm in hospitality industry.
Competitive advantage: The integration in the hospitality industry also helps decreasing
the competition level in the marketplace. Which can be negative for development of new
strategies and approaches in environment. While this can be beneficial as lower amount of
competition will leads to developing monopoly and working as independently firm by
developing competitive advantage in marketplace.
Standardisation: The integration in the functions of different business firm leads to
integrating their standard values as per the shared objectives and goals of firm. This will results
in developing standardisation in working of both the linked firms (Morgan, Lugosi and Ritchie,
2010).
Quality: The quality of the firm services can also be enhanced while working in
integration with various business in the hospitality industry. The standardisation will improve the
quality of services delivered to the customers.
Fewer major organisations: The integration of different business firm leads to
development or establishment of few major organisation only this will reduce the competition
level and develop monopoly in marketplace which can be contribute for development of business
effectively.
Reduction of independent businesses: There will be reduction in the independent firm
working in the markets of hospitality industry as all the firms are working in integration and
independence in policies and working norms will not be there in workplace (Morrison, 2013).
Control of sub-sectors: This integration will results in control over the sub-sectors of the
hospitality industry which will negatively affect the growth of these respective sector in
marketplace.
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Increase in market share: Integration will leads to expanding the customer base as well
as the market share of the aligned or acquired business in the hospitality industry and ultimately
contribute in enhancing the profitability of firm.
Marriott international hotel also acquired Star-wood hotel and resorts in 12.2 billion US
dollars by integrating their operations horizontally. Accor hotels also brought the shares of
Fairmount, raffels and Swisshotels in the value of 2.7 billion for expanding customer’s base in
France in 2015. Delta hotels and resorts are also acquired by the Marriott hotel chain in amount
of 135 million to expand the business in different parts of world.
TASK 3
3.1 Rational for the new project of hospitality industry
The rational is the development of blueprint of the new business in the hospitality
industry. This involves defining the new profitable ideas by carrying out market research and
investment plan.
Idea: The idea is to develop a coffee shop along with the recreational activities like live
music and games in the premises of cafe. This will provides better connectivity to the customers
of coffee shop.
Market research: Before implementing the business plan in practice individual have to
study the market trends and the acceptability of cafe with gaming experience in marketplace by
the customers. This will determines whether the business proposal will be profitable or not.
Target market: This is very important aspects for development of an profit earning
business plan. As the targeted market will be the respective customer of the business which will
be involved in purchasing the company services (Nunkoo, Gursoy and Ramkissoon, 2013). So,
the target market for the business can be coffee lovers, Game lovers, mostly people belonging to
young age or students.
Target location and size of business: The target location is most important aspects for
development of an profitable business and size of business also helps in determining the serving
area and the capability to service the number of people.
Investment: While investment for the project proposal should be defined and managed as
per requirement so that the business should be established properly.
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Licensing: The various licensing procedure to be followed in the cafe is maintaining food
and safety provisions, licensing for the food standard council of hospitality, business registration
lenience etc.
3.2 Developing a new business plan
The development plan of new business should be developed responsibly by defining
various development, design and operational plan in order to establish a profitable business in
marketplace. A new business plan is described below which follows the defining the requirement
of development, designing and operational aspects of new firm in marketplace.
Development: The development of the business plan involves defining about the new
concept or idea which is to be developed during the defining business plan (Page, 2014). This
involves stating the vision, objectives and mission of establishment of new concept on the
marketplace. Then carrying out market research and studying about the different stages of
development of business bluepoint, selecting various types of various tool and techniques to
defined new strategies for business plan. Then defining the target market for the developed plan
of cafe with experiencing of games in the working premises. This will provide a better
experience to the customers. The individual should select a particular destination which is having
a huge hub of customer in the marketplace to access the hospitality services of cafe. The person
should also access the target market size which will contribute in the profitability of the firm.
Design: The development stage is followed by describing about the design of the cafe.
The person will describes about the ambiance, interior and exterior face of the cafe (Salazar,
Costa and Rita, 2010). Then he will arrange the furniture and develop interior as per the
customer flows and needs to extract users interests. The design of the cafe will be linked to the
target market customers so that services user can be attracted from the design of cafe and can
contribute in profitability of firm.
Operations: The operational activities should be pre decided by the developed of the
business plan in order to determines various needs of business establishment in marketplace. The
individual should have knowledge about the required staff for the cafe, defining about the
qualification needed in the staff (Scott, 2011). Person should be responsibly active in dealing
with cultural diversity in operation and also dealing with various conflicts arises in the workplace
with time. The operations should be complied with the ethical and legal consideration in order to
work effectively in marketplace.
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