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Hospitality Provision in the Travel Tourism Assignment
Hospitality provision in the travel tourism assignment delves with the various roles that are being played by the hospitality industry as a part of the travel and tourism sector as well as the connection amongst the hospitality and extended business in regard to travel and tourism. Post that, the implications in respect of integration are analysed for the hospitality industry that is to be prepared and the various processes through which there has been the influence of integration on the business of hospitality will be needed for discussion.
The interrelationships between hospitality and wider travel and tourism businesses
The organisations for hospitality are regarded as the most important service providers in respect of the sector associated with travel and tourism. Regarding leisure or in respect of business, people spend a significant amount of time by staying in the hotel particularly when it is regarded to be of a luxurious standard. It is obvious that the guests will want to reap the benefits that the hotel is offering in which they will stay, particularly when they are paying hefty prices for staying there.
Aviation: The airline industry’s success is majorly depending on how much accommodation is available. There is a strong chance for the airlines industry in facing a business loss when the hotels are having a full capacity. This is regarded as a major challenging aspect regarding the airlines that are flying to small destinations where there is the occurrence of situations in which all the hotels of that small destination were full. Therefore, it is very much essential for the famous airlines to evaluate the scenario in relation to the fact that whether beds are available or not, and to select the flight timings as well as the days subsequently. In respect of on-board catering, there exists hospitality in the different airlines and the sleeping arrangements are available there as well. When certain extra amount is paid in respect of the budget airlines, they will be providing foods as well as beverages, and the expensive airlines in the majority of time are offering complimentary food and beverages, even to those passengers who travel by economy class. There is the also the availability of some airlines that are very much expensive having seats that can recline for turning them into beds and also there is the presence of silver service dining and a bar which is centrally located, where the consumers are able to select their choice of food and drink. (Romero, 2011)
Package holidays: The hospitality function regarding tour package holidays is very significant. The standard of the hotels that are included in package holidays are depending on the prices that are paid in relation to the packages. When a person opts for a budget package, then the individual should not expect a 5-star standard accommodation and in reality it is more of a 3-star to 4-star standard accommodation. Mostly, there is the occurrence of a huge purchase of famous holiday packages, therefore the consumers will benefit from improved hotel rates and ticket prices of the airlines. Hotels also make special tie-ups with the individual travel agents, offering special rates for those tour companies in exchange of the confirmation of a constant client-flow from the end of the travel agents. Clients might choose the place of accommodation particularly for rooms, bed and breakfast, half-board basis, or in a very less possibility of the basis for full-board. The travel agency representatives are doing a constant check in respect of their clients who stay at the hotel to ensure that they enjoy a very good time. (Romero, 2011) They are also discussing in respect of the different challenging circumstances that are experienced by the client all through their stay so that the crisis situations can be fixed at the earliest. Packages are also available that includes everything but a significant disadvantage is that they are not offering the clients the flexibility of the options that are offered by the other packages. The tourism packages that includes everything considers everything that is needed in respect of staying such as meals, beverages, hotels, touring and all the other aspects that are needed. Those who will be choosing those packages will be spending a major time period say for instance, in the resort as because most of their different activities will be occurring in the resort.
Business Travel: The hotels that are chosen by the businessmen have the capability to provide the much needed amenities to work comfortably. They try to search the hotels that have business centres, Wi-fi facility or cable as well as internet accessibility, conference rooms to conduct the meetings as well as other services such as laundry services for 24 hours and also services regarding dry cleaning. The businessmen might have the preference for indulging in certain activities for relaxation that might include relaxing by the pool or spa and many more. But, they are not able to enjoy these facilities as they are having a tight schedule most of the time in respect of their business travel. (Romero, 2011) The same scenario occurs for the catering companies also. To impress the business partners and the clients, the businessmen will be selecting some restaurants of high standard. They will be using the money that their organisations are supplying so that they have the ability to afford the restaurants of high standard to accompany their accommodation of premium standard. Because of globalisation, there is the existence of a need for development in respect of travel that is related with travelling for business and this will keep increasing with every passing day as the link within different locations are opening up. (Romero, 2011) Business travel has no become quite affordable in relation to different companies because of the presence of budget airlines but there exists some companies that are having the notion that to maintain their standard of reputation stable there is the requirement to travel in an airline’s business class. The business class that exists in the different airlines are made in respect of the business professionals who have the requirement for a space to work. The developing economies of China and India which are being considered as rising tourism destinations have become very well-known destinations in respect of business travel and because of this the different international companies from the various parts of the world are showing an inclination to set the branches of their organisations in those destinations. (Mowforth, 2015) There have occurred significant developments in respect of the industries in those locations and as a result particular companies will not be missing out on any opportunity to increase their market share and nature of profit.
Conferences and exhibitions: There exists a large importance regarding the conferences and exhibitions on the travel and tourism sectors that are locally as well as internationally placed. For instance, if we take the example of a small island tourist destination called Malta it can be stated that the place has hosted its largest conference that had invited almost 5000 delegates to take part in Oriflame’s yearly conference and moreover, every delegate stayed at hotels of 4-star or 5-star standard. Because of that, the local economy succeeded in accumulating almost 8 million euro, which was mainly related to the accommodation cost. The caterers were chosen particularly from the hotels to prepare the food for all the delegates. (Mowforth, 2015)In majority of the scenarios, conferences are hosted in the hotels itself in which there is the occurrence of the events. The clients get the opportunity to view the products or services through the assistance of exhibitions before making any kind of purchasing.
Attraction for visitors: Attraction for visitors is considered to be a certain place or destination regarding which the people are talking or which will be creating an interest within the travellers, tourists and different people. There exist different types of attractions such as structures that are manmade that takes into consideration museums and theme parks and existence of natural attractions such as natural parks. Moreover, there is the existence of particular locations that create an interest in the visitors only because of the activities that occur there even when the place that hosts the event is not of much significance. The most well-known places in respect of visitor’s attraction are regarded as the theme parks that are catering to a large percentage of visitors every year. For instance, a very well-known attraction in the world is known as ‘Disneyland’ and can be found at the United States, Japan, France as well as China. (Mowforth, 2015) Most of the theme parks are having their own cafes and restaurants where the families will be having the ability in enjoying different kinds of food and then once again indulging themselves towards further enjoyment. In addition it can be stated that Disneyland that is located in Paris has two hotels in the resort that is being showcased mostly in package holidays and have thus garnered an extensive popularity.
For instance, in respect of Marriott and Hilton, it can be said that they are concentrating on their journey in becoming the best hospitality organisation in the world to work with the travel and tourism business in respect of every individual they are having interaction with that ranges from their guests, to their owners as well as franchisees and also their shareholders as well as associates. Simultaneously, they have remained true to their core values which are putting people first, pursuing excellence, embracing change, acting with integrity as well as serving the world in respect of the travel and tourism business.
P2.1 Analyse the implications of integration to the hospitality industry.
The analysis of the implications of integration to the hospitality industry can be explained as under,
Branding – A brand name will assist in summoning a certain emotional aspect that are related with individual experiences that have an association with the brand. The success of TUI hotels and resorts depends on the different methods related to branding that are being adopted by the significant players in the tour and travel industry, and the different processes through which their messages gets delivered to the markets that they are focusing on. There is a need that the clients possess the capability for associating themselves with those brands and brands are having the ability for identifying their target customers. (Lussier, 2011) In the majority of the situations TUI hotels and resorts are focusing towards making the clients who are loyal to their brand do the viewing of their products as well as services as an extending part of their personality and character. For instance, when certain tourists will be staying at TUI hotels and resorts, they will expect same type of facilities for check-in, business facilities, and a luxurious stay similar to every other TUI hotels and resorts. If anything else is offered which is of lower standard then it will not be accepted in regard to the money that is being charged for the TUI hotels and resorts.
Market control and integration within bigger organisations – There are some UK tour operators like TUI that purchased hotels in various international locations to increase their global presence and also efficiency. By doing this, they are having the capability to control the rates of the hotels for getting a beneficial return that will support them for bringing packages that more reasonably priced for the clients to boost their sales. Although, this type of activity is providing organisational benefits to larger organisations like TUI, it will create a negative impact for the smaller companies in the tour and travel sector. (Lussier, 2011) The integration of the larger tourism organisations will undoubtedly create a threat-based scenario for the smaller tourism organisations and sufferings of the employees and their families cannot be avoided as the larger organisations will start taking the control. Therefore, only those tour and travel companies will be surviving that have the capability to offer the best balance between quality, quantity and value for money. Growth related to active packaging is considered to be a major risk for the various tour and travel companies and this was so enormous that various UK tour operators are planning to shut down the various retail outlets to concentrate more on selling through the internet.
Increased globalisation – Post the success of TUI Group’s marketing planning expansion in various parts of UK, the additional international markets are needed to be captured after that. TUI Group will be faced with internal globalisation where the employees from various parts of the world will develop relationships with one another. External globalisation will occur when team members at TUI will have communication with the clients from different parts of the globe. (Moutinho, 2011) The social networking websites are allowing for such communication to occur. TUI has created their account on social networking sites such as Facebook and Twitter that will assist the team members and loyal clients from different parts of the world for joining as well as involving themselves in discussing various matters. Globalisation has also supported towards breaking the trade related barriers particularly in the particularly within the EU. (Moutinho, 2011) The EU countries are receiving the benefits from products as well as services that are having a reduced cost when there will occur trade inside the Euro zone.
Integration is the method to attain close and seamless coordination amongst various departments, groups, organisations, systems and many more.
Integration is of three types,
- Vertical Integration – This takes place when one organisation is taking over another at an earlier or later stage of production or work.
- Horizontal Integration – This takes place when an organisation is integrating with another business at the same stage of production or work. (Moutinho, 2011)
- Conglomerate Integration – This takes place when the merging of a business happens with another producing a complete altered product.
P2.2 Discuss how integration has affected a hospitality business.
The ways by which integration has affected a hospitality business are mentioned as under,
Standardisation– This is a complex process that will be consuming enough time, particularly in the tourism industry that takes into consideration a large number of alternatives. The automated processes can definitely get normal but the major challenge is the standardization of the various human components. The actualisation of standardisation can occur in hotels but there is the existence of some limitations. Standardisation of the way by which a telephone operator answers the phone can be done and also the way the guests are greeted when they check into any TUI hotels and resorts. Each and every time there will be the occurrence of a concern related with the changing aspects because the different departments with TUI Group are being run with the assistance of different people who possess their personal standards and ways in dealing with the various scenarios. (Freeman, 2010)
Market share and economies of scale – There will occur major decrease in the operating costs when organisational integration will be taking place. When TUI Group takes over a hotel, the cost associated with investment will increase but benefits that can be actualised by offering an extended range of products and services can be seen very soon. Regarding this, integration will allow TUI Group to reduce its dependency on other accommodation providers since most of the functions can be taken care inside the organisational parameters. When TUI group is interested in doing investments in well-known hotels, the tour operator will earn larger profits in respect of the operating cost. The cost of package might get reduced by TUI Group and as a result the clients will get benefitted. (Frydman, 2013) With the proper placement of different strategies, there will be the development of the market share as well as maximum profitability will be occurring. With the assistance of integration that takes place in a horizontal manner, TUI Group will have the capability to extend their current client base and with the assistance of integration that will occur vertically, TUI Group will be having the option to enter new markets and will be attracting various other kinds of clients.
Quality– There exists no confirmation that quality improvement will occur with the assistance of integration. It depends on the ways through which the human element changes. There is no confirmation that when TUI group is taking over a particular hotel, the new owner will possess a better approach in respect of quality improvement. There might be situations where the employees will not be gelling well with their new bosses as they might consider the fact that the step that has been taken in respect of quality improvement is not feasible or logical that might develop the risk related with the commitment of bigger mistakes. (Furnham, 2012)
Therefore, it can be stated management of the TUI Group did not choose a strict top-down administration. The management of the TUI Group should be listening to the various views of the employees as they are always in connection with the clients, and they know what the clients are expecting from the organisation.
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target market.
Project Title – Analysing the business scenario for a hotel-cum-restaurant business:
To develop a rationale for a selected project clearly justifying decisions linked to target market are mentioned as under,
- Idea – The planning is to be done for opening a hotel-cum-restaurant business. This will be situated at a tourist destination in the UK. The reason being that there exists a huge demand in respect of hotel-cum-restaurant businesses in regard of the increasing range of tourists who are travelling to the UK every year. This shows that there is the existence of great potentiality in respect of these types of businesses. The major focus of the business will be for focusing on the tourists who are belonging from the middle class backgrounds as well as offering them the services at a diminished cost so that that will be enjoying their stay at UK.
- Market Research – There is the need for a great deal of market research to be done before starting a new business and its result is very significant for deciding the business related success. Regarding this, market research will consist of people who will fill the questionnaires and personal interviews will also be conducted with various people that will be taking the services of the hotel-cum-restaurant. (Fernando, 2011) This will also help in assessing the expectation of the customers as well as the service related planning can take place. This will commence with the finding of the service demand whose planning is taking place for offering at a standard price. Regarding this, the size of the sample will be 2000 random tourists visiting UK. (Freeman, 2010)
- Target Market – The target market that has been mentioned earlier are concentrated on the tourists coming from the middle-class backgrounds who will visit the UK and who are not having the financial strength to afford deals having higher packages. As a result, the target segment will be considering the tourists who will need standard package deals.
- Target Location & size of business – United Kingdom is consider to be the geographical location that is being targeted where a large section of tourists coming from middle class backgrounds will visit and the size of business will be around 300 rooms having facilities like rooms having air-conditioning and 150 rooms which are not having air-conditioning. There will be the facility to provide food as well. (Fernando, 2011)
- Investment– A specific amount of investment will be done in two processes. One will be to take bank loans and the other will be doing a personal investment. The major percentage of the investment will be done with the help of taking loans from the bank.
- Licensing – Every scenario of the new business strategy will be undertaken in a proper manner that will be following all the legal scenarios that takes into consideration the licensing that should be implemented which is required to open as well as run a business.
3.2 Develop a plan for hospitality business including the operational requirements of the business’ organisational structure in relation to human resource allocation.
Project Title – Analysing the business scenario for a hotel-cum-restaurant business
- Development Stage:In this stage the business scenario for a hotel-cum-restaurant business will be focusing on the aspects related with idea generation, doing proper market research, having a proper target market, having a target location and focusing on the business size, doing adequate investment and having proper licensing.
- Design Stage: The interior as well as the ambience are regarded as the most important aspect of the service industry especially in respect of hotels, restaurants and many others. As a result, the hotel-cum-restaurant business whose construction is being planned, should be handling the designing in a very careful manner and also the interiors as they are playing a very important role for getting as well as sustaining the developing services in respect of the tourists. As the concentration is on the tourists coming from the middle class backgrounds the designing should be simple but attractive that will give the tourists a feeling of staying at a standard hotel. (Buckley, 2011)
- Operation Stage: The stage of operation takes into consideration the methods of handling the functional aspects such as what are the ways to handle, who will handle, what are the departments that are needed and many more. As because, this is considered to be a hotel-cum-restaurant business, so there is a need to have two receptionists for the hotel and two receptionists for the restaurant. There will also be another two managers each for the hotel and the restaurant. There will be two guides who will show various places of attraction to the tourists. Specialised cooks will also be kept who will be having the ability for the preparation of various kinds of foods for the tourists who will stay in the hotel and visiting the restaurant. (Conrady, 2011) Regarding the qualification of the different staffs it can be stated that at least a bachelor degree should be possessed by the receptionists and they should definitely be having better communication skills. Better culinary abilities should be possessed by the cooks. There should be a human resource department for the recruitment of the necessary staffs and then giving them proper training and also to resolve situations of conflict within them.
This assignment is related with hospitality provision in the sector of travel and tourism. It has been observed that individuals are travelling for three main aspects that are for leisure, business and recreation. As a result, to offer the tourists with better travelling experience, the tourism industry should be considered as the part and parcel of the hospitality industry.
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Frydman, R (2013). Rethinking Expectations: The Way forward for Macroeconomics. Princeton University Press.
Furnham, A (2012). The Psychology of Behaviour at Work: The Individual in the Organization. Psychology Press
Lussier, R (2011). Management Fundamentals: Concepts, Applications, Skill Development. CENGAGE Learning
Moutinho, L (2011), Strategic Management in Tourism, CABI.
Mowforth, M & Munt, I (2015), Tourism and Sustainability, Routledge.
Romero, I. and Tejada, P., (2011). A multi-level approach to the study of production chains in the tourism sector. Tourism Management, 32(2), pp.297-306.