Hospitality Provision in the Travel and Tourism Sector: A UK Focus

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HOSPITALITY PROVISION IN THE TRAVEL AND TOURISM SECTOR
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HOSPITALITY PROVISION IN THE TRAVEL AND TOURISM SECTOR
Table of Contents
LO1: Understanding the role of hospitality in the travel and tourism sector..................................2
1.1 Interrelationship in between Hospitality and Wider Travel, Tourism Sector........................2
LO2: Impact of Integration of Hospitality Industry........................................................................4
2.1 Analysis of implications of integration of hospitality industry.............................................4
2.2 How Integration has an effect on Hospitality Industry..........................................................6
LO3. Be able to plan the development of hospitality business........................................................7
3.1. Development of a reasoning for a selected project with justification of decisions linked to
target market................................................................................................................................7
3.2. Development of a hospitality business plan.......................................................................10
Conclusion.....................................................................................................................................11
Reference.......................................................................................................................................12
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HOSPITALITY PROVISION IN THE TRAVEL AND TOURISM SECTOR
The hospitality industry in United Kingdom is having an enormous growth in the recent
economy. The growth in the economy has led to establishment of many new hotel businesses.
The development of the hospitality industry in the economy has impacted the positive growth of
the economy. The industry has around 32% of contribution to the GDP of the economy
(Brotherton, 2015). The hospitality industry is an attractive industry to venture in UK.
The following assignment will deal with the importance of the hospitality industry in travel and
tourism sector of UK. The project will also deal with the effects and impacts of the integration
within the hospitality industry. The planning of development of the hospitality business is also
discussed in the assignment.
LO1: Understanding the role of hospitality in the travel and tourism sector
1.1 Interrelationship in between Hospitality and Wider Travel, Tourism Sector
It is often seen that there is confusion among people regarding the use of the words Travelling
Sector, Tourism Sector and Hospitality sector. Although they seem similar, but there must be
proper knowledge about the meanings and definitions of these phrases before using them in
different situations.
Hospitality can be defined as the word that is used to describe the welcoming nature of an
individual or a group towards guests. Hospitality sector in the modern days are filled with
different types of organizations which offer a variety of services. The most common businesses
across the hospitality sector are Lodging Services, Hotel Services, and Spa Services etc. These
businesses across the world are dedicated towards making sure that the guests that arrive at
particular destinations are well entertained and well served (Rahimi, 2017).
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HOSPITALITY PROVISION IN THE TRAVEL AND TOURISM SECTOR
Hospitality businesses across the world in the modern generations are directly involved in
serving to the leisure travelers mostly. The travelers in this particular market are looking for time
to relax and enjoy. Hence, providing ideal services to these consumers is one of the business
strategies for leading hospitality organizations.
In the modern business industries it is seen that travel and tourism businesses also are opening
services that can be categorized as a part of the hospitality sector. For example, if a traveler is
flying to a certain destination with a certain airlines, then it can be categorized as travelling
services (Wood, 2018). However, the services of providing food and beverages on board can be
categorized as hospitality services. Therefore, it can be said that in the modern generation, all
travelling businesses have hospitality services included in them.
The hospitality sector along with the travelling sector can be understood as a part of the whole
Tourism Industry. It can be said that touring is a certain activity that includes making a journey
to a particular place for the purpose of business or enjoyment or relaxation. Therefore it is
obvious that the traveling services and the hospitality services will be part of the Tourism
Industry as a whole (Buttle, 2016).
Tourism is normally based upon a particular destination, attraction or facility. However, in order
to get to that destination, the help of traveling sector is needed. With the help of this opportunity,
the airline businesses, train or bus services, cruise or ship services are making most of the profits.
The whole Tourism industry therefore is the summation of the services from both the hospitality
and travelling sector. Services such as Hotels, Lodges, Spas, Theaters, Restaurants are all part of
the tourism industry as well as travelling services such as Airlines, Bus services, Cruise services
make the travelling industry what it is. There is definite interrelationship in between Travel,
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Tourism and Hospitality and this relationship makes it one of the most dynamic industries an it
guarantees success in large proportions (Specklin, 2015).
LO2: Impact of Integration of Hospitality Industry
2.1 Analysis of implications of integration of hospitality industry
Integration can be regarded as one of the most essential elements of modern day industries that
make sure that business objectives are met with effective amount of activeness. The integration
process can be defined as the technique that aligns all objectives, policies an technologies
together, In this regard it is also mentionable that in hospitality sector, the process of making sure
that all services are the same effective in different locations is very much important as success in
hotels are generated from consumer visit and consumers only visit organizations if there is an
effective amount of goodwill created (Willimas, 2015). Thus, maintaining quality is an important
activity as far as hospitality businesses are concerned and by integrating, the process of maintain
quality becomes a bit difficult.
It is often seen that, in order to follow integration, organizations generally team up with other
businesses involved in the similar industry. However, this poses a major issue towards the firm
as it is very much difficult to align the perspectives, policies and objectives of different
organizations and thus conflicts can arise at certain situations that will cause the progress
towards organizational objectives very much difficult.
The process of integrating is also based upon collaborating different operational elements and
this can be categorized as a huge risk as the resources will be used by different individuals in
different situations. The process will be based upon collaborating different resources of different
hospitality organizations and it can be said that this will be critical as the quality management
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HOSPITALITY PROVISION IN THE TRAVEL AND TOURISM SECTOR
techniques will be very hard to manage. This can be having a negative impact on the
organizational goodwill. In this regard it can be said that if there is integration in between two
different organizations and if there are situations where a strong organization and a relatively
smaller organization is collaborating (Gunlu, 2016). In this context, it must be mentioned that
hospitality organizations are rated upon their abilities and serve and in most cases abilities are
determined by the resources in hand. In a collaboration act, if there is one particular organization,
that is supplying most of the resources, then, there will be situations where the weaker firm will
be excluded as far as the decision making activities are concerned. It is recommended that the
integration activities are executed by maintaining a very balanced approach.
Globalization is one of the most important deciding factors as far as the integration in hospitality
industry is concerned. As the tourism rules in different countries have been relaxed, the
organizations are more directed towards making sure that they take the opportunity and gain a
desired amount of profit (Schwartz, 2015).
Integration can be of two different types and it can be said that both types have their own sets of
pros and cons. The integration types are as Vertical Integration and Horizontal Integration.
Vertical Integration can be described as the process in which a larger organization buys another
organization in its distribution chain so that the consumer base can be served with fast, better and
effective amount of services or goods. For example, if Hilton Hotel buys any local organization
in India to develop its capacity to serve, then it can be categorized as vertical integration. With
vertical integration it can be said that cost will be minimized and profit will increase.
In Horizontal integration, the process is very different and it can be said that two different
organizations from two different industries come together and make sure that the resources
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HOSPITALITY PROVISION IN THE TRAVEL AND TOURISM SECTOR
combined are helpful in making sure that all consumer demands are fulfilled and all objectives
are obtained (Alcott, 2018).
2.2 How Integration has an effect on Hospitality Industry
As far as integration is concerned, it can be said that there are different situations where the
organization can easily harvest benefits. The most common benefit in this case to make sure that
organizations are able to gain competitive advantage. by integrating, organizations can easily
increases their capacity to serve large consumer bases and it can said that is a huge plus for a
firm involved in a competitive market. The integration activities in this case are generally
directed towards making sure that all organizational products create value and the consumers are
convinced to pay a fair amount in exchange of the value that is being provided (Slae, 2015).
The integration activities can also help to make sure that economy of scale is achieved. Through
this activity, the costs of operations are minimized and the hospitality organizations are able to
offer goods and services effectively to the consumer base. There are also chances that an
organization can create monopoly by following the integration techniques. If there are situations
where organizations are able to understand the capacities and make an increase, then chances are
that the consumer base will be pulled towards the organization effectively. This can mean that
the market leadership will be very easy to obtain.
The business can also be diversified by using integration as a business technique, it can be said
that there will be situations where the firm can take the help of another firm in understanding the
markets demands of a particular group of consumers (Wang, 2015). This will be very much
helpful in penetrating new markets as the markets are generally consisting of demand and supply
gaps and the organizations that know how to fill those demands generally end up making the
most amount of profits.
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HOSPITALITY PROVISION IN THE TRAVEL AND TOURISM SECTOR
Integration can also result in making sure that the employees of a particular organization can
learn from another workforce by establishing effective working environment relations. This
increase the skill level and it also provides employees with the chance of professional
development. In this situation, it is also expected that the constant flow of data can cause
confusion among operational units.
LO3. Be able to plan the development of hospitality business
3.1. Development of a reasoning for a selected project with justification of decisions linked
to target market
The development of a rationale for a selected project can be clearly justified from the following
examples.
Idea
The idea in this project is to open a hotel with restaurant and spa. The location of the hotel would
be a place in the United Kingdom where the demand of tourism is high. The demand for lodging
and food is high due to the increasing amount of tourists in UK every year. United Kingdom was
accounted for 3.6% in the international tourism receipt (Slade, et al., 2015). The competition in
this industry is alarmingly high and there must be ways in which the business can get a
competitive edge. Middle-class or Upper-middle class tourists will be the target customers of the
hotel. In order to get a competitive edge a plan can be made where the price of the services will
be reasonable and the quality of the services will be as high as possible. Also, the restaurants will
have multi-cuisines at an affordable rate and there will be complimentary English style breakfast
for the guests. The spa will mainly comprise of Ayurvedic massage and Thai massage as there
are a small number of spas in UK and the introduction of such style of spa will attract customers.
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HOSPITALITY PROVISION IN THE TRAVEL AND TOURISM SECTOR
The basic idea is to provide the best hospitality services to the upper middle-class and middle-
class customers at a highly reasonable price. The initial plan will comprise of the given ideas.
The long term idea will be to expand the company in other geographical locations and other
segments in order to give the best services to people of other places. The execution of the plan
can only be successful with the assistance of a strong market research.
Market Research
Market research is a crucial part that must be undertaken in order to analyse the profitability of
the business plan (Mason, 2015). A proper analysis of the market results in gaining knowledge
about the opportunities and threats pertaining in market environment. The market research in this
aspect will consist of a steady survey and individual interview of the market. This will help us to
identify the taste and preference of the existing market in order to understand the type of product
and service that will gain maximum customer satisfaction. The market research will help us to
estimate the demand of product and service that is planned to be offered to the consumers. The
process will also help to determine the exact price that will be reasonable for the product and
service to be offered. The sample size of the survey would consist of 1000 consumers who are
planning to visit United Kingdom. The market research will help us to forecast the future
possibilities that will help us to convert the ideas into something having a commercial potential.
Target Market: The target market would be the upper-middle class and middle class families
who want the best service for the affordable price. These consumers will not be able to afford
deals with high packages. Hence, the services and products will be shaped to deliver with best
quality for the reasonable price demanded. The sample will consist of consumers of all ages who
look for a good value for their money and who are continuously striving for affordable deals.
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HOSPITALITY PROVISION IN THE TRAVEL AND TOURISM SECTOR
Target location: The target location for setting up the business will be top tourist destination in
and around United Kingdom where there is a high demand for affordable lodging deals.
Size of the business:Initially, the plan is to set up a mid-cap hotel that will consist of around 150
rooms with all the required facilities and luxuries. The plan is to have a budget of 10,000,000
GBP as initial capital for the establishment of the hotel.
Investment Plan:The initial budget being 10,000,000 GBP, out of which 50% of the capital will
be contributed by the partners and the rest will be borrowed from banks or financial institutions.
The list of initial products and services to be offered are:
 150 fully equipped room, out of which there will be
- 10 luxury suits
- 20 executive rooms
- 70 double bed rooms
- 50 single bed rooms
 A sophisticate restaurant serving multi-cuisines to the consumers and serving
complimentary English style breakfast.
 A fully facilitated Ayurvedic and Thai spa with a Jacuzzi and a number of professional
massage therapists.
 Conveyance facilities to guests.
Licensing: The hotel will be dealing with all the licensing and legal matters before opening the
hotel (Dredge, Airey and Gross, 2014). The hotel will also strive for a ‘star’status from
organisations like Visit England and AA that will enhance the credibility of the hotel.
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3.2. Development of a hospitality business plan
The most important aspect of venturing into the hospitality industry is the quality of the service
and the infrastructure (Ahmed, et al., 2015). The infrastructure of the hotel must be updated and
fully equipped. The interior must be well maintained and should make the customers feel
comfortable and at home. The plan is to invest around 35% of the initial capital in the interior as
the interior as the interior of a hotel is a prominent factor of attracting new customers and
providing customer satisfaction. The interior should be decorated with new and trendy designs
and should also be ornamented with new technologies. The interior must give a sense of luxury
as well as a pinch of comfort to the customers. The customers should have a good impression of
the hotel while entering in the lobby. The main aim of the hotel is to provide maximum customer
satisfaction, hence providing them with a good infrastructure will create a good impression.
People from the middle class or upper middle class background strives to get the best facilities
and service but also at a pocket friendly price. Hence, the luxurious infrastructure will give them
a sense of luxury but the reasonable price will help them to have maximum customer
satisfaction.
The next important operation in the hospitality industry is the staffing process. The human
resource gathered by the hotel must be well skilled and well designated for the respective post.
Hence, to ensure the efficiency of staffing there will be a strong HR management department in
the hotel. The department will take the responsibility to hire an individual who will be best suited
for a post. The employees will also be trained from time to time with the help of the self-
managed training system. There will be an appropriate amount of staffing done and the hotel will
pay a good attention towards enhancing the job satisfaction. Since, job satisfaction will lead to
the employees to provide maximum customer satisfaction, the human resource will be paid good
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amount of attention (Spracklen, 2014). The hotel will try to focus on recruiting young personals
as the young individuals will be dynamic and enthusiastic with their works. The young
workforce also has a high probability of loyalty and future growth.
The hospitality industry in the region of United Kingdom is having a steady growth (Harrington
et al., 2014). The existence of big hotels with a great amount of market share is no0t effecting
new hotels to come up in the market. This is due to the growing economy of the market that
promotes new businesses to start. The competition in the market is becoming stronger day by day
and the hotels with creative and innovative ideas get the competitive (Brotherton, 2015).
The above assignment dealt with the roles that the hospitality industry play in the economy and
the importance and effects of integration in the hospitality industry. An example of a rationale
hotel had been also taken and been discussed about its plans, ideas, market research and
operation and human resource plan. This has broadened the concept of the hospitality business.
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