This is a Icon College Hospitality Provisions TT Assignment in which we discuss Hospitality Industry and Provisions of Travel and Tourism.
It is well known fact that tourism sector is highly dependent on the hospitality sector as this sector is an integral part of the travel and tourism sector. Hospitality services play an important and crucial role in the success of travel and tourism sector in domestic and international tourism. This sector is able to sustain itself due to the services of hospitality service mainly. Travel and tourism sector requires various kinds of services like travelling, logistics, accommodation, pantry services etc. So, on the one side where tourism sector arranges for the logistics and travelling of the tourists, hospitality sector arranges for the accommodation and the food and other services to them. In other terms, it can be easily said that hospitality industry adds the flavor to the travelling and touring experience of the tourists. In fact, with the changing time, tourists are more focusing on the comfortable stay, quality of food and the support of staff as the main parameter for selecting any tour and travel operators for their tour plans.
TASK 1 Role of Hospitality Industry
P 1.1 Interrelationships between hospitality and travel and tourism businesses
With the time, the term “hospitality” is becoming more and more popular and different people interpret it in different context by relating it to the industrial, commercial or public services. Basically, hospitality can be defined in a relation where there are two individuals or parties. In these two individuals or parties, one is host and another is guest. Considering an example of a hotel, all the customers visiting to the hotel are the guests to the hotel and the hotel is the host and is getting paid for hosting the services for the customers. These kinds of relationship between the guest and host can be either private or public depending on the arrangements.
Hospitality can also be defined as hospitable action of one towards someone else. Hospitable means the actions like welcoming another and offering own services to him. Travel and tourism sector is one of the fastest businesses development all over the world. One of the fasted developing economies, China contributed around $102 billion in 2012 towards the international tourism. These figures show the kind of growth this sector is having these days. One can define tourism as travelling to some place by an individual or group for the purpose of leisure, recreational or the business meets etc for a limited duration. With the changing time this sector has gone far beyond the travelling concept only. Now experience has become the most important part of this sector. This is the experience which all tourists expect out of any tour and hospitality sector is main part which can provide the required experience (Garcia, 2005).
Hospitality and tourism are closely linked to each other and are supplementing to each other for their survival. It is already being discussed that tourism is an activity which enables the tourists to visit the places they want to visit. This visit by tourists can have recreational, business or leisure purpose. Irrespective of their purpose, they require various basic services like beverages, foods, accommodation and travelling mode for their visit to their destinations. Hospitality industry is the main industry which provided all these required services to the tourists or to the travel and tourism sector so that tourists can add experience to their visit. Hospitality industry can be understood as a supplier to all these services and supplement the services provided by the travel and tourism sector. So providing a place for comfortable stay, food with good quality etc are the main services that are provided by the hospitability industry. Tourism sector has helped too much in the existence of hospitality sector. Example of Goa in India can be taken to understand the sector. First people visited this place and with the time, they found it to be a great destination. There were very less number of lodges and hotels in the starting to accommodate tourists. With the increasing demand for the accommodation in Goa due to increased awareness among the tourists about the place, hospitality industry started growing there for accommodating the tourists. Tourists from all over the globe visited the place which resulted in the increasing demand for the state as a tourist destination. With the changing time and increasing demand of the hospitality business in Goa, it has become a favorite destination and has high demand for the properties in the area. This has helped in the growth of the local economy and it can be easily seen that how travel and tourism sector has helped the hospitality industry for their growth (Makens, 2006).
The integration in both these sectors is so much that the growth or slack in both of the sector goes parallel. If there is any kind of positive or negative impact on the travel and tourism sector, the same impact can be observed in the hospitality sector. Global recession of 2000 can be taken as an example to show the integration of these two sectors. During the recession, people avoided all kind of activities related to the tourism sector. So, with the less inflow of the tourists to tourism destinations, lodges and hotels suffered a lot due to no customers at the tourist destinations. Hospitality services mainly give a personal touch to the services provided to the tourists and encourage more tourists to visit the destinations by their better services and also encourages for spending more and more money during their tours.
Satisfied tourists provide their good reviews about the services and also encourage other tourists to visit the places they have already visited. So, a positive word of mouth is spread for that particular service provider if the tourists are satisfied with its services and in this manner it results in the growth of the business in those places and they are able to sustain themselves. Hospitality and tourism sector are so integrates that these sectors cannot work in isolation and withdrawal of one sector from support to another sector would result in a heavy loss for both the sectors. Both sectors support each other for their sustainability and for their revenue generation. Quality of service plays an important ad crucial role in the hospitality sector. Like a positive word of mouth can be spread and result in the fame of any service provider, in the same manner, a negative word of mouth can result in the complete loss of the business to the service provider. This is the main reason for the quality of service being important to this sector (Pan, 2008).
These days, hospitality sector is not limited to provide food and a place to stay to the tourists. It is far beyond that and many activities are undertaken. It is all about the kind of experience to the tourists during their visit. They look on various factors like kind of place, the way hotel staff behaves with tourists, costs of accommodation, quality of food, hygienic factors in the place of stay etc. All these factors create an opinion about any service provider of this sector. In other words, experience of tourists defines the growth or the decline of the business. Finally, it can be stated that both the sector supports each other and any kind of issue with one sector impacts another one in the similar pattern. In spite of such a close interrelation, these sectors can’t be seen as a single entity.
TASK 2 Impact of Integration
P2.1- Impact of integration
Hospitality business has various impacts due to integration. Taking the example of branding, it is a crucial aspect for the growth strategy of the organizations. Brand helps the customers to associate them with the company and shows a bond with them. Basically branding helps the organization in differentiating itself from other competitors in the market. Even some customers have emotional attachments with the brands they are using. This is the main reason for brands becoming an integral part of the growth strategy of the companies. So, branding plays an important role in the hospitality and tourism sector also similar to all other business and industrial sectors. It can be easily find out that the success of hospitality and tourism sector depends on the strategy of branding to a greater extent. Tourists have started associating themselves with the various brands. Taking example of TATA group of India which is a huge corporate house of the country, it provides two famous hotel chains TAJ group and Ginger hotels. TAJ group of hotels is the ultra luxurious chain and ginger brand of hotels provide budget services to the customers. In this manner, they have used the concept of integration in a wise manner. At the first place, the brand TATA has ensured the integration for various classes of customers and caters to their needs. In this manner they are trying to cater to the need of all classes of customers and increasing the customer base (Hemmington, 2007).
With the time, some of the travel operators have integrated their services with the airlines and the hotels industries for various popular destinations. With the help of such a strategy, tour operators provide airlines or other transport tickets along with the accommodation to the tourists at reasonable price. In this manner, hospitality and tourism industry provides a bundle of services to the consumers at an economical price. It helps the customers in planning their vacation and other activities in more convenient and a hassle free manner. Another benefit of integration is the movement of the business in those areas which do not lie in the core expertise of the organization. So, a hotel chain can offer tickets of airline services along with the other mode of services with their partner operators. In this manner, integration gives a simple supply chain for all the activities involved in the hospitality and tourism industry (Camisón, 2000).
Integration has also helped in the reduced competition in the sector due to the consolidation. For example, if a company X has two hotels in the Miami and there is a business fragmentation due to the presence of another company B near to the property of A. It affects the business of both the brands. So, they would look forward for the horizontal integration of each other. In this manner, if A acquires B, then B would be no more in the hospitality industry and there would be only A as the service provider for the tourists visiting Miami. So, in this manner, integration helped to reduce the competition in the market by the elimination of B from the market. It can be easily stated that integration helps the organization in expanding their businesses in the famous tourist spots. The above discussed example clearly shows that such integration helped the organization in increasing not only the customer base but also the revenue of the organization. Taking another example of the vertical integration by a business group A by the acquisition of rival budget hotel chain and online travel portal along with its 4 hotels, this integration helped business groupA in the expansion of its market significantly. So, this integration helped in the revenues generation from not only hotel business but also from online portal etc.
It is being observed that an immediate impact of integration can be seen of hospitality business, rather it takes time to analyse the exact impact on the business. But there are lots of cases where the exact impact of integration is being observed after a very long duration and have also seen negative results etc. Such situations are seen when a very well performing business acquire an infant or ailing business. Such strategy may also fail at times if not implemented in a planned manner with proper logic.