Analysis of Hospitality Provision in the Travel and Tourism Sector

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This report examines the crucial role of hospitality within the travel and tourism sector. It begins by exploring the interrelationship between hospitality and the broader travel and tourism industry, highlighting the services offered, such as food and beverages, travel arrangements, and accommodation, and emphasizing their interdependence. The report then investigates the impact of integration within the hospitality industry, discussing different types of integration like horizontal and vertical integration, and analyzes how these strategies affect business operations and competitive advantages. Furthermore, the report formulates the basis for a selected project that aids in decision-making within the hotel industry and proposes a plan for the development of the hotel sector, considering factors such as commercial, office, and administrative structures. The report concludes by summarizing key findings and providing references to support its analysis of the hospitality industry.
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HOSPITALITY
PROVISION IN
TRAVEL AND
TOURISM SECTOR
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1The interrelationship between hospitality and wider travel and tourism business.................3
TASK 2............................................................................................................................................6
2.1 The impact of integration in the hospitality industry.............................................................6
2.2 Integrated has impacted over the business of hospitality......................................................7
TASK 3............................................................................................................................................8
3.1 Formulate the basis of selected project that helps in decision making..................................8
3.2 Prepare the plan to develop the hotel industry.......................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
In the recent times the travel and tourism has been emerges as one of most profitable
venture recent days. The bog companies related to the travel sector are also coming up with a
new and creative idea (Mok, Sparks and Kadampully, 2013). The business of hospitality is
growing very fast as this considers the relationship between the host and the guest. This is all
about welcoming the other people in other place with respect and goodwill gesture. Pkf hotel
experts which an member of firm known as Pkf international. Which is a consultancy firm used
to do audit,tax accounting in more that hundred country. In this report will analyse various
aspects of travel and tourism sector that can affect the productivity of the certain business and
profit performance of the company.
TASK 1
1.1The interrelationship between hospitality and wider travel and tourism business
The hospitality is considered as the most valuable part of service of travel and tourism.
The visitors and customer are spending a considerable amount of money to experience the luxury
things. The hospitality industry offers various services like the logistics services, foods and
eatable, beverages etc. while tourism is an activity that engage the traveller while travelling from
one place to another through which an individual experiences luxury and adventure benefits. so
in short the hospitality industry is the supplier of various kinds of services to the tourism sectors.
There are three major or main segment in the hospitality industry services first one is
food and beverages that deals with the numerous kinds of eatable and beverages. Second one is
travel and tourism sectors which deals with travelling of the person to the various location. The
temporary accommodation that is considers as lodging (Nickson, 2013).
In the global level the hospitality refers to the luxury and comfort zone in the
environment that is away from home. As per spending power of the customer is increasing day
by day. The consumer wants to experience happiness and is also able to spend money. Due to
this type of thinking the global hospital sector is experiencing the immense growth, demand,
innovation. This industry is experiencing the boost growth. And if we see around the world
hospitality sector is contributing about 9.5 percent GDP across the world.
To define the structure of the international hospital industry it can be classified into
different forms
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Commercial structure - The main purpose of the hotel industry is to earn more and more
profit with the premium service to the customer. The overall structure of hotel industry
is such that it should create such environment where the visitor can feel relaxed as well
luxury both at the same time and its commercial structure varies according to the type of
customer that is if visitor is rich then it can afford better luxury services otherwise not .
Office structure – The different arrangement of line of hierarchy through which
communication various duties in an organisation can be organised is refereed to its
office structure. Its office structure determines the roles and responsibilities of the staff
member. It also shows flow of information among the various level of management.
Administration structure- The administrative structure of the hotel starts from the head of
management that is from the director of the hotel (Testa and Sipe, 2012). The executive level
comes in which assistant of hotel manager and Human resource manager. At the level of
operation the representative of visitors, chef or cook in a hotel industry and hotel supporting staff
comes.
Here all the various structure that are interrelated to each other on the basis of
dependency of various task on each other. For gaining the efficient productivity and performance
of the hospitality industry the interrelationship between each of the structure should be managed
effectively by the particular operation manager in specific hospital business.
The primary hospitality providers in the United kingdom are the hospitals, restaurant
chain, tour and travel industry.
Hospitals- The institution or an organisation which provide the care and effective
treatment to patients suffering from various kinds of problem related to the health issues. The
hospital industry provide the nursing staff and some kind of equipment in the hospital. The
hospital also provide its major assistance to the people in teaching of the medical student.
Restaurant-The another hospitality business in which servers various types of eatable
with huge amount of variety at the particular place is considered as restaurant. They offer wide
range of cuisines and services in it which starts from inexpensive food items to like fast food to
the very highly price of luxurious cuisines. In UK these can be classified into the various food in
different types of country like Chinese, Japanese , Thai food etc. The taste changes according to
the necessity, taste and different preferences of the customer.
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Travel and tourism- This deal with the pleasure of travelling from one place to another
with the comfort of luxury and adventure. But the tourism may be on the international level or
can be with in the native country. The main aim to tourism and travel is to give such an
experience to a traveller so that an individual could become happy and can remember the time
during travelling for longer period of time to experience satisfaction.
Here all this hospitality service provider are interrelated to each other as the hospital also
needs to all are interdependent on each other as in hospital the doctors also need need to travel
from different location. Restaurant which provides food is also food to the staff member of
hospital and traveller both.
The various hotels are classified according to the star ratings rated from 1to 5 and there
are huge variety of rating schemes used by different types of organisation.
One star hotel -The type of hotel which offer there products and services in a budget
segment. It can compromise with the service and overall cleanliness. The visitor can pay for the
particular service and can get benefit according to the money value of it. This includes budget
rooms only.
Two star hotel -The rating which gives focus to those kinds of customer which are price
conscious and can afford the basic rates of rooms and services. This also include breakfast and
some basic kinds of services (Swanson and Edgell Sr, 2013).
Three star hotel- This fulfil different range of accommodation and services. The
expectation of the customer are comparatively higher the services are also limited based upon the
fees they are paying .
Four star hotel- In this the customer want to achieve the deluxe experience and expect
the superior design quality with some sort of standard services.
Five star hotel-The customer in this segment want to achieve the highest amount of
luxury in all types of operation and services. They desire to have excellent quality of in services
and some creative and new ideas in form of luxury items. This have personal night clubs,pubs
luxurious bathrooms in this category.
The overall interrelationship between the hospitality and travel and tourism is that if a
person want to travel to different location with its business travel purpose or for doing
conference then it will consider the choice of hotels according to the rating of hotels.
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Those outlet which are in the areas both in and outside of the hotel there are various
example of food and beverages outlet in UK which classified as follows, Bars Which includes
wide variety of soft drinks, liqueur and light snacks etc. The second one is cafeteria in which less
food options and various types of meal plan are there.
TASK 2
2.1 The impact of integration in the hospitality industry
It is very important that the experts of PKF hotel give their expertise at all the level in
their field. So that if at any level there are chances of increasing the productivity, then they can
contribute in the best possible way. The integration is always necessary in any type of industry as
this helps in increasing the skill power and overall performance of the hotel industry. The
integration can be done only by the helps of creativity and innovation in the particular field or
aspects. But there are some several disadvantages regarding the process of integration like if
integration is not done properly then it could fail the overall system and can also make the threat
to the security of the system (Bharwani and Butt, 2012). There are various types of integration
which we would study further are as follows.
Horizontal integration- It is the process in which the company and the industry tries to
increase its production level in the same part of there production chain. As an expert of PKF
hotel it could be known that industry cannot create the monopoly in the sector of hospitality
industry. But it can remain different to the rival company so that it can improve its brand image.
But in the sector of the hotel industry the horizontal integration refers that when more than one
company of the same field comes together to make overall business more large and enormous.
Vertical integration-The combination of two or more firm at the different stages of
production which always remain separate from the main firm than that type of integration is
considered as vertical integration. So with the context of the hotel industry if the specific hotel or
company tries to expand its business then individual company open the another firm which can
help in the business of the parent company. With the helps this type of integration the hotel
industry can achieve the cost effective operation and higher amount of profit margins. The PKF
hotel always try to provide the best of he services to their customer by improving themselves
and so that they can fill the desire of each and every customer. For example the PKF hotel
provides some experts and timely service of accommodation for 24 hours.
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The experts of principle of ownership with context to PKF hotels believes that the things
and the product which the company have are always there and our product is always better and
effective then the product of the rival companies. By using this principle of ownership the
company can improve its creativity level of there production and services in the effective time.
2.2 Integrated has impacted over the business of hospitality
The most important advantage of integration of different services is that it helps in
creating those possibilities or chances, that could make the company to gain the competitive
environment. By combining the overall completion of two different companies the hotel industry
can make satisfy to the larger number of the customer.
The integration of the two big and major companies can also create monopoly and this
will bound the customer to only buy there own services. As by having the condition of monopoly
customer do not have more choices to them (Kapiki, 2012). If the two or more companies comes
together to work for the same cause then it will also helps in reducing the overall cost of the
operation and to earn huge amount of profit .Integration also helps in offering various kinds of
new services the visitors or customer also helps in increasing the profit margins.
By having the integration there are fair chances of increasing the overall quality in the
product and services. But there is no guarantee that there will be improvement in the service will
take place. If the integration would be then but there are several possibilities that the older staff
member may not accept the new boss. So there is the overall responsibility of the management to
make ensure that are the staff member are agreed to work under the new boss or not.
The integration process helps in making attraction to the various customer form the
different part of demographic region. Through this wide range of the customer can be attracted .
This also helps in facilitating the better services to the consumer. By having the process of
integration the value of the hotel industry increases successfully at the global level and this helps
in making the stronger brand image at the international level.
If there are two small hospital industry and they need merge themselves with each other
then it is very beneficial for both of the companies as by integrating the process, merged
company can compete with the rival company of same industry so this is how integration can
impact over the business of hospitality.
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TASK 3
3.1 Formulate the basis of selected project that helps in decision making.
Grosvenor House Which is one of the most luxurious hotel in London, England. Which
provide the facilities to the elite class of income group. So for developing the basis of this
particular kind of hotel business. The business of the hotel industry is increasing drastically in
recent period of time and now the business organisation have also realised that the hotel industry
should also give the equal importance to customer if they want to do business for the longer
period of time. There are various basis which helps in development of the hotel business and
these are development, design and operation.
Concept of the product- The concept of the product is related to the service provided by
the Grosvenor House. Which includes various types of offer and services to the various category
of consumer. The concept of the service should be developed in such a way that it could meet the
expectation of each and every type of customer (Guttentag, 2015). As this hotel comes in the
class of elite type so this can also gives focus to various services like bar, gyms, premium
accommodation service, and by giving the 24 hours customer support service. The concept helps
in making decision about the future growth and development of the company.
Target market- The hotel generally gives it focus to the upper higher class of people that
could afford to premium pricing of their product and services. By the help of proper target or
marketing segmentation Grosvenor House can serve all its services to their customer in an
effective manner.
Location- The Grosvenor House is placed in such a location where the visitors can reach
easily with their comfort. This is only the one hotel which is situated at the single particular place
so by the help of effective transport facilities in Grosvenor House the can solve the problem of
location of the customer that have problem in reaching the hotel ().
Scale- The Grosvenor House is the very small size of hotel that have only one branch and
there are almost 420 rooms 74 suits and 2 restaurant with parking facilities. This also provides
provide the various facilities like foods and beverage. So it is very necessary to implement the
some sort of marketing activities like advertising, promotion as this helps in expanding the
overall business in future period of time.
Funding-The overall funding of the money in the hotel is done by the helps of taking
loans and by own money earned as a profit. There are lots of ways by which the company can
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arrange various types of funds through by looking for the big investor who is eager to make or
ready to invest in the hotel industry to earn the decent amount of profit.
Product and services- Grosvenor House hotel provided the various kinds of services like
transportation facilities, availability of guide during travelling through different places, the
facilities of personal Wi-Fi and hotspot in there rooms. This also provide separate bathroom
having the Turkish in it. With personal swimming pool and personal gym also.
Licensing- The hotel industry can also generate profit by doing licensing of hotel and
some amount of generation of fund is also obtained by this process that can be further used in
the creativity and growth of the hotel industry (Duncan, Scott and Baum, 2013).
3.2 Prepare the plan to develop the hotel industry
The most ever challenging part in the today's business environment is to develop the plan
which can help in the growth and development of the business. The most important part of the
hotel industry in to make the plan for the successful running of the industry .The plan should be
such that the effective useful of the resources and all the things which are required for increasing
the productivity of hotel should be integrate in an effecient manner. Hence the effective
planning helps is boosting the performance of industry in future period of time. firstly the
planning requries reasearch in the particular field of subject and that would be in the context of
the desire and choice of the customer and then some innovative ideas are made which helps in
gaining the competitive advantage over the rival industry in decent amount of time.
The planning regarding developing the industry should be done by the expert in the particular
field.for example in the context of hotel industry the planning of advertisement and promotions
should be done by marketing manager of the hotel industry.same for the operation and the
administration department .
So the proper planning should also include overall operating model which is as follows
Operating model- For maintaining the daily working operations effectively the operational
model should be very efficient. In the context of Grossvenor hotel the business model can be in
the form of various business operation.By having an effective management of activities the
employee can perform there roles and responsibilities in a perfect manner.so while recruitment
and selection of staff there is the duty of hr manager of the hotel industry to select those kinds of
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employee which are capable of doing in an productive manner and can also make the customer
and visitor satisfied with their services.
Designing-In the hotel industry is very important to design the overall structure of tje hotel in
such a way that it should attract tje visitors (Zaitseva, Goncharova and Androsenko, 2016). If the
visitors are attracted towards the specific service of the hotel than the good image will be
developed in the mind of the customer.This will help the company in the matter or promotion
and advertising.As mouth publicity of the consider to be the best type of promotion to other
people.designing cover both the interior and exterior part of the hotel.this provide the eye
catching experience to the visitor as well as creates the memorial experience to the consumer.
The most important part before the designing and operating model in the development part. As
the interior of the hotel industry can be improved with the time but the if the hotel industry wants
to grow for the longer duration then it should consider the innovation part also.from which the
development can be made and the can see the best possible future growth.
The basic idea while doing this project is know about what type of increment can be done in the
service so that consumer of each level could be satisfied with amount of money it is spending
for its service (Page, 2014).
Development-In United Kingdom the are different types of hospitality services are there that are
getting boom. Such as travels tourism,bars,pubs, hospital and restaurants. All these services are
making huge amount of profit. So these services are developed almost and now there are less
chances of development further. But now they can earn more profit by developing the marketing
process and research.
So for providing the best service to the customer and the proper marketing research
should be done which includes several steps.
Firstly the hotel have to address the particular area in which they want to do research for
example in the hotel industry for the customer desire factor or for increasing the performance of
staff member. Secondly to develop the overall and aim and objective of the research which will
always be singlethen the hotel industry will select the data then chose the suitable method of
collection of the data through the surveys and questionnaires. At the last of this process the
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collected data in analysed and the overall conclusion of the solution is reached ,by gaining
effective knowledge though the overall research.
CONCLUSION
As per the above mentioned report , it has been evaluated that hospitality services are considered
as the main part of the tourism industry as it helps visitors to remain comfortable in their overall
trip. It can be said that effective hospitality services support in increasing interest of the visitors
in travelling and helps contributes in developing economy of the country. It has been analysed
that tourism business and hospitality industry are interrelated with each other as it contributes in
increasing profitability of both the sectors. Both the industry has vast impact over the business
performance as if one industry fail to survive then definitely another sector will not be able to
manage their work. It has been observed that tourism industry have to consider various elements
while taking decision related to their business. These points includes target market, locations,
scale, sources of funding and many more as it helps them in taking effective decision which will
contribute in the growth of the company. Along with this, it can be said that effective business
plan is helpful for the hospitality industry as it guides them in performing their business
according to it only in order to achieve targeted goals and objectives.
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REFERENCES
Books and Journals
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
del Mar Alonso-Almeida, M. and Bremser, K., 2013. Strategic responses of the Spanish
hospitality sector to the financial crisis. International Journal of Hospitality
Management, 32, pp.141-148.
Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
Testa, M.R. and Sipe, L., 2012. Service-leadership competencies for hospitality and tourism
management. International journal of hospitality management, 31(3), pp.648-658.
Swanson, J.R. and Edgell Sr, D.L., 2013. Tourism policy and planning: Yesterday, today, and
tomorrow. Routledge.
Bharwani, S. and Butt, N., 2012. Challenges for the global hospitality industry: an HR
perspective. Worldwide Hospitality and Tourism Themes. 4(2). pp.150-162.
Kapiki, S.T., 2012. Quality management in tourism and hospitality: An exploratory study among
tourism stakeholders.
Guttentag, D., 2015. Airbnb: disruptive innovation and the rise of an informal tourism
accommodation sector. Current issues in Tourism, 18(12), pp.1192-1217.
Duncan, T., Scott, D.G. and Baum, T., 2013. The mobilities of hospitality work: An exploration
of issues and debates. Annals of Tourism Research, 41, pp.1-19.
Page, S.J., 2014. Tourism management. Routledge.
Zaitseva, N.A., Goncharova, I.V. and Androsenko, M.E., 2016. Necessity of changes in the
system of hospitality industry and tourism training in terms of import
substitution. International Journal of Economics and Financial Issues. 6(1), pp.288-
293.
Medlik, S., 2012. Dictionary of travel, tourism and hospitality. Routledge.
Prud’homme, B. and Raymond, L., 2013. Sustainable development practices in the hospitality
industry: An empirical study of their impact on customer satisfaction and
intentions. International Journal of Hospitality Management. 34. pp.116-126.
Camisón, C. and Monfort-Mir, V.M., 2012. Measuring innovation in tourism from the
Schumpeterian and the dynamic-capabilities perspectives.Tourism management. 33(4).
pp.776-789.
Han, H. and Hyun, S.S., 2015. Customer retention in the medical tourism industry: Impact of
quality, satisfaction, trust, and price reasonableness.Tourism Management. 46. pp.20-29.
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