Hospitality Provision in Travel & Tourism Sector: Report 2018

This report examines hospitality provisions within the travel and tourism sector, highlighting the interrelationships between hospitality and wider travel and tourism businesses. It analyzes the implications of integration, using examples like TUI Travel Plc and Marriott International to illustrate key concepts such as vertical and horizontal integration. The report discusses how integration affects hospitality businesses, considering aspects like scale economy and service quality. It concludes that hospitality and tourism are interdependent, with integration offering benefits like cost minimization and market expansion, while also posing challenges such as potential conflicts of interest and impacts on employment. Desklib provides access to this and other solved assignments for students.

HOSPITALITY PROVISION IN TRAVEL AND TOURISM SECTOR
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Table of Contents
INTRODUCTION................................................................................................................................2
TASK 1..............................................................................................................................................3
LO1...................................................................................................................................................3
1.1 DISCUSS THE INTERRELATIONSHIPS BETWEEN HOSPITALITY AND WIDER TRAVEL AND
TOURISM BUSINESSES.................................................................................................................3
TASK 2..............................................................................................................................................1
LO2...................................................................................................................................................1
EXECUTIVE SUMMARY.................................................................................................................1
INTRODUCTION............................................................................................................................1
CONCLUSION...............................................................................................................................5
REFERENCES.....................................................................................................................................7
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INTRODUCTION
This assignment is based on the Hospitality provisions in the travel and tourism sector.
Hospitality is a term that is explained as the relationship that host and the guest shares and the
host attends the guest with all their friendliness that also consist of entertaining the guest,
invitee or the visitors. Hospitality provision has a major importance in the travel and tourism
sector as the impact on the visitors of the host community plays an effective role in developing
a positive mindset for the visitors. This assignment evaluates the interrelationships among the
hospitality and travel and tourism business in a wider context along with the consequences of
the integration to the hospitality sector. Furthermore, this report explains the ways integration
has impacted to a specific business in the hospitality sector such as travel and tourism, hotels
etc. Finally, this report explains a rationale for the chosen project like restaurants, pubs and
bars, hospitality services etc. by giving appropriate explanations to the decisions associated
with the target market. Lastly, this report consists of a complete plan for the specific business
that consists of the operational needs of the business such as a structure of the organization,
allocation of the workforce and other resources along with a proper organizational chart.
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TASK 1
LO1
1.1 DISCUSS THE INTERRELATIONSHIPS BETWEEN HOSPITALITY AND WIDER
TRAVEL AND TOURISM BUSINESSES
Hospitality is termed as the technique and
the methods the service giver adopts in
order to take care of its clients. Hospitality
is a significant aspect that supports in
distinguishing among the variable services
and service givers (Law, et al. 2014). The
hospitality sector is not confined to a
particular sector it has several sub-sectors
under it such as transportation,
accommodation, travel and tourism,
restaurants etc. Every individual industry
gives there specific facilities to the
customers in the best way such as the
hotels provide best accommodation
facilities to its users while travelling sectors
look after the travel convenience of the
customers etc. and each industry makes all
the efforts to satisfy all the requirements of
its customers (Bowie, et al. 2016). There is
no doubt that the consumers tend to opt
the services of the hotels, airlines or tour
operators that give them required and
premium quality facilities in context to the
hospitality as it is the aspect that matters in
making the visit of the costumers
comfortable as well as relaxing.
The travel and tourism sector is one such
industry that is associated with all the
above sectors and services. Because when
an individual decides to go on a trip that he
has to opt for the travelling services like
airlines, accommodation facilities that are
hotels and restaurants (Sun, et al. 2017). So
it can be clearly understood that the
hospitality has a key role in the travel and
tourism sectors. Hospitality now is not just
a feeling or experience it has entirely
become industry and travel and tourism
companies ties-up with such companies to
give their customers next level services
(Leung, et al. 2015). Both the hospitality
and the tourism sector have the main
objective to make their customers feel
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relaxed with the services and have an
elated experience. Hospitality and tourism
sector must make sure that both the kinds
of services such as intangible and tangible
are being properly given to the users.
Hospitality industry plays a crucial role in
travel and tourism business and it isn't a
wrong statement to be said that hospitality
and the travel industry both have an
interrelation not only in basic but in a wider
context (Law, et al. 2015). To retain
customers and gain more potential
customer it becomes necessary for both the
sectors to work with combined efforts. The
travel and tourism industry can only be
successful when it has several aspects of
hospitality associated with it.
In order to understand the inter-relation
appropriately among the hospitality
business and the travel and tourism
business an example of two companies
operating in respective sectors is explained
below:
TUI Travel Plc. is a renowned company that
operates in the travel and tourism sector
that is headquartered in Crawley, West
Sussex, UK. The company functions in
almost 180 countries and has almost
around 30 million consumers. The company
has 1800 travel companies that are spread
in almost all the major tourist destinations.
The company is known for its quality
services and a company with the finest
budget for its services. TUI Travel Plc. also
has an airline company named as First
choice airlines.
Marriott International operates in the
hospitality that has services of hotels and
lodging services. The company provides its
services all over the world and it has around
566 hotels with its brand name and the
company is also listed as a fourth best
organization working in the hospitality
sector by the Forbes Best Companies to
Work and The Times.
It is clear from both the above-discussed
business that both have interrelation in its
services. Both companies have a strong
base of customers who rely and trust on the
services of the company. TUI Travel Plc.
must plan its packages in accordance with
the Marriott International and its customer
base. Both the companies have the main
purpose of valuing its customers and
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providing them better services. The TUI
travel maintains the contract with the
Marriot International and also designs plan
that personally suggests Marriott as the
best place for accommodation to the
travellers. There is decided commission
based on each customer by the Marriot
International to TUI group that helps it to
increase the profit ratios of the company.
On the other hand, with the support of
Marriot TUI travel Plc. also has advantages
in their travel and holiday packages that
help them to make different packages for
the customers depending on which kind of
hospitality services they want to opt. Also
by combine decisions, TUI travel provides
its customers discounts and offers on the
pre-bookings of hotels that help to enhance
their sales and generate more profits.
Thus, by the entire discussion it can be
concluded that both the hospitality and the
travel and tourism business supports each
other and has a strong connection and if
the facilities of one industry are absent it
will be difficult for the other sector to fulfil
the demands of the customers and live up
to their expectations.
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TASK 2
LO2
EXECUTIVE SUMMARY
This management report is based on the consequences of integration within the hospitality
sector and its understanding based on the examples related to the hospitality industry. Also,
this report consists of the ways by which integration impacts on hospitality industry business
like Whitbread, Marriott international, Accor Hotels etc.
INTRODUCTION
Integration is termed as the grouping of two or more working units in order to result in a single
big entity. Integration has value especially in any working sector such as travel and tourism or
hospitality industry (Anderson, 2014). This report will explain the importance as well as the
impact of the integration of the hospitality business and its implications.
2.1 ANALYZE THE IMPLICATIONS OF INTEGRATION TO THE HOSPITALITY INDUSTRY
Integration in the business has never been a new concept in the working under this two or
more entity combine in order form a big entity. It has a major role in supporting the business
activities of the companies (Bernardo, et al. 2015). The hospitality sector maintains the
integration of the resources by using the two main types of integration that are vertical as well
as horizontal integration. Its implications can easily be noted in the hospitality industry as the
companies are tending more towards satisfying the demands of the customers. There are
mainly two types of integration used in the hospitality industry those are:
 Vertical integration
 Horizontal integration
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FIGURE 1: TYPES OF INTEGRATION
{SOURCE: https://businessjargons.com/expansion-through-integration.html}
VERTICAL INTEGRATION: The vertical integration is explained as when any company buys the
supplier or purchases the other company in the distribution chain. Such type of implication
provides the output of minimizing the cost and increasing the profits (Shaidullina, et al. 2015).
Hotel chains such as Intercontinental Hotels Group, Whitbread, Marriott acquired Delta Hotels
& Resorts adopts this approach in which the booking and company outsources the booking
services to some other agencies so that the customer base of the company grows as the
customers will can choose the packages best suited to their budgets and also can customize
according to their demands. This type of integration helps in expansion in terms of area as well
as services. That is in this the hotels like Intercontinental Hotels Group, Whitbread has several
offers for its customers on their own but also uses outsourcing to provide its customers services
by other sources so that maximum profit is gained and the company can attain a strong
customer base.
HORIZONTAL INTEGRATION: Under the horizontal integration two different types of company
from different sectors work together under the similar kind of management to gain competitive
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advantage and both the companies have the same purpose of increasing the sales of their
services and maximizing the profits of the company (Mudrik, et al. 2014). The example to this is
Marriot International joining hands with the TUI group both make combine efforts to serve
their customers that helps in providing better services to the customers. The TUI group
combines its travel and booking services with the Marriot international hotels so that a better
output can be obtained for the customers as well as both the companies.
The implications of the integration of the hospitality sector are as following:
 By the help of the integration process, the cost of transportation and other expenses on the
travelling can be majorly minimized.
 Integration may also result in differences in the interests such as the organizations that
combined to give integrated services have different mission and vision for their companies
so the decision-making process will be affected which will result in issues on both the ends.
 Integration because of the globalization will help in gaining more revenues especially in the
internal business working (Hon and Lui, 2016.).
 Integrations help in maximizing the ratios of the profits and also help in the market
expansion.
 Integration helps to ensure the customers are a variety of range of services that increase
the customer base of the company as the customers are highly satisfied.
 As the large company in the integration mergers up with other companies that lead to the
removal of a smaller company that impacts on the employment of the employees of small
companies leaving a bad impact in their economy.
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2.2 DISCUSS HOW INTEGRATION HAS AFFECTED A HOSPITALITY BUSINESS
Integration is the combination of two or more companies that make join efforts to attract the
consumers it helps in attaining competitive advantage for the companies adopting integration.
Integration helps to use the resources by allocating them properly, set the pricing according to
the competitors and use the technological elements. It helps the companies to expand its
business over many areas and different platforms and increases the brand value of the
companies opting integration (Salvioni, 2016).
In the case of Marriot international, the company is overtaking on the Starwood Hotels &
Resorts and this integration will have both negative as well as positive impacts on the business
of Marriott International:
 SCALE ECONOMY: Due to this integration of Marriott International and Starwood Hotels &
Resorts the cost of operating can be minimized to a grater extinct. The initial investment in
overtaking the Starwood Hotels & Resorts by Marriott international will be high but the end
output will result in the increased economy for the business.
 QUALITY: There is no surety that to what extinct the quality of the services will be impacted
by the process of integration as it majorly depends on the factors involved. As during the
takeover of Marriott international to Starwood Hotels & Resorts there are many chances
that the employees may not follow the orders of new boss and work according to their
strategy as they won’t find the integration feasible for themselves and this will ultimately
result in the downfall of the quality services provided by the Marriott international
previously.
 STANDARDIZATION: Standardization is usually established in the restricted creation of any
increased services by the company. It is said to be a complex and time taking process as
there are many options for different services and products (Gummesson, 2014). So in the
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hospitality business standardization can be adopted as any customer in any branch of
Marriot international hotel will receive same working culture, treatment, atmosphere and
the process and after integration to set up the similar atmosphere the company has to work
hard on it and follow several processes to create the same working approach in the new
company that will work under its brand name.
 TECHNOLOGY: The technological integration has a major effect on the hospitality industry.
It may either make the organizations name or can also damage it. Using new and advanced
technologies help in gaining quick operations and it helps in well-practising operations
within the organization.
 GLOBALIZATION: Marriott international has integrated with Starwood Hotels & Resorts but
if the company lacks in the idea about the globalization and the factors associated to it such
as laws and regulations, cultures, term and conditions there will be many complexities in
performing the operational functions for the management of the Marriott International. It is
a big challenge to amend changes and the operational function in the new company it
becomes an issue to live up to the expectations of the customers.
In the case study of Marriott International and Starwood Hotels & Resorts, Marriott
International has overtaken the Starwood Hotels & Resorts and so it becomes significant for the
company to provide its customers with a premium services that Starwood Hotels & Resorts use
to give them as it will impact on the brand name of Marriott international if they don’t live up
to its customers expectations. This will effect the income of the Marriott international and will
result in fewer business profits and market shares which was the main purpose of overtaking
the business of Starwood Hotels & Resorts.
CONCLUSION
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This report concludes about the integration that has different implications in the hospitality
industry such along with the different types of integration that can be adopted in the hospitality
sector such as vertical integration or horizontal integration. Also, this report helps in
understanding the impacts of the integration on the hospitality business taking the case study
of Marriott International and Starwood Hotels & Resorts.
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