Hospitality Provision in Travel & Tourism Sector Assignment

Hospitality Provision in Travel & Tourism Sector Assignment

Hospitality sector is one of the leading sectors in present time. Hospitality sector is one of the sectors which help the economy of the country as it helps in attracting people towards it and helps in bringing the foreign currency to the country (Crotts, et. al., 2009). It is necessary that the government of UK should work more upon the hospitality industry as providing better and more effective services to the target population will help in attracting more people to the country and will help in the sustainability of the country.

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Task 2

2.1 Analyse the implications of integration to the hospitality industry. You should include a range of examples from hospitality industry.

Integration gained popularity in 1990’s. At that time businesses started focusing on reaching economies of scale with the help of which companies were able to benefit from the lowering operating costs. Such integration helped the companies in increasing their global presence in the market and succeeded in increasing their market share. Some of the integrations are as follows:

Vertical Integration

Vertical integration is a process in which merger takes place in a similar chain. Many business Company working in a similar chain merge with each other. Companies do vertical integration so as to make sure that the operating cost of the business could be lowered down. Traditionally this integration is characterised as a forward, backwards and lateral integration (Crotts, et. al., 2009). Due to integration barriers to the entry in the market are created which results in lowering down the competition. Due to these barriers various new companies could not enter into the market and helps other companies to move on the verge of success and sustainability. Control of the suppliers could also be gained by the companies with the help of vertical integration. Development of the monopolistic behaviour in the market results in attracting the focus of various government agencies and results in their interference in processing which cause restrictions in the market.  For example: like for vertical integration hotels present in hospitality sector will have to merge with other hotels so that they could manage their bookings at the time they won’t be a having the vacant rooms. This will help the hotel to maintain its good will in the market.

Forward integration is integration in which companies in the same chain merges to provide effective and efficient of services to the target customers. In this case, hotels could merge with the travel and tourism sector which could result in attracting more customers towards the hotels. This kind of merger helps both hospitality as well as travel and tourism sector with the effect of which both can sustain in the market and could generate more revenue in the market. For example, Holiday Inn could merge with the Thomas Cook so as to insure that it could manage other tourism services of the customers coming to accommodate in the hotel.

The process in which suppliers are purchased by the company so as to enhance its sale in the market and to utilise all the inputs of the suppliers to provide effective set of services to ultimate customers present in the market. In this case a tour operator could buy an airline company or a hotel as they both work as a supplier for tour operator which helps in attracting the customers towards the services of travel and tourism business (Sethuraman, et. al., 2015). It is necessary that the travel and tourism business should access all the inputs of the suppliers as this will help in gaining information regarding needs and wants of the customers. Gaining information regarding the needs and wants of the customers will help in availing them attractive tour packages will help travel and tourism business to attract effective set of customers towards the business and will help in ensuring success in the market.

Lateral integration is another integration in which merger between the companies takes place which indirectly provides same services. It is not necessary that the merging company should have the direct link or competition with each other.  It could be summarised that both travel and tourism and hospitality sector could get benefited by applying integration with the effect of which they will be able to provide effective set of services to the target customers present in the market (Aragon-Correa, et. al., 2015). For example hotels could merge with the catering service providers so as to avail the food facilities to the customer coming for accommodation in hotel. One of the example for vertical integration is First choice which is a tour operator and has a airline named as First Choice Airlines, this is the integration done by the tour operator so that t could provide effective set of services to the target customers.

Horizontal Integration

Horizontal integration is the integration with the help of which business could expand its customer base. Companies applying horizontal integration try to expand the customer base above from all the economies of scale and try to maximise the profitability of the company to sustain in the market. Merger on the horizontal integration takes place when the companies are at the same stage of distribution chains. One of the most effective examples of horizontal integration is Hotel Hilton which purchased Walt Disney Resort. Both the hotels worked in the same distribution chains (Martínez, et. al., 2014).

Horizontal integration is opposed to the competition. It could be seen that there are various airline companies which merges with the hotel chains with the effect of which they could manage to provide quality service to the target customers present in the market. In horizontal integration merger works in a systematic manner as airline companies reschedule the timing of their flights according to the availability of the hotels. This type of coordination among the hotel and airline companies helps in attracting more customers and generating more revenue. It is necessary that both company doing business in the hospitality sector and companies indulging in the travel and tourism business must cooperate with each other and should work accordingly as this kind of activity would result in benefiting both the industries as well as economy of the country (Sethuraman, et. al., 2015).

Task 3

3.1 Develop a rational for selected project and clearly justify decisions linked to target market.

Business Integration

Purpose of selecting appropriate project for hospitality business is to make sure that the business could continue to move on the verge of success and could make sure that it could fight with the competitors available in the market. Here the project is to integrate with the airline industry so that business could expand and could attract more customers towards it. With the help of this project Hotel Hilton London will be able to ensure that it could sustain in the market and will get a huge exposure to the target market (Sethuraman, et. al., 2015). This integration of Hotel with Spice Jet will help in attracting more customers towards it and will help in increasing its sale. For a business working in the hospitality sector it is necessary that it should develop trust among the target customers. Reason behind this is that hospitality business do not provide any kind of product to the target customers, it just avails the services which on which many of the customers do not trust. Therefore, building the trust among the target customers will help Hotel Hilton London to get position in the market.

Plans are the means with the effect of which an organisation could ensure that it will succeed in the market. Plans give an assurance that the step that business is taking is for its welfare and is for its growth in the market. All the future vulnerabilities could be removed with the help of a plan (Crotts, et. al., 2009). It is necessary that before integrating with Spice Jet, Hotel Hilton London should develop a proper set of plan and should gather proper information regarding various positive factors attached with the integration and various negative factors related with the same. This process will help Hotel Hilton London in decision making whether to integrate with travel and tourism business or not. Making the plans in advance helps the business to decide whether to move with the target or not. With the help of this development plan Hotel Hilton London will be able to assure that it will attain its targeted objectives in the prescribed time and will get benefited which could be seen by the hotel in its revenue graph. Therefore, making a plan for the project and working on that project will help the business to ensure its success and will help it to deal with the competitors available in the market (Martínez, et. al., 2014).

3.2 Develop a plan for a hospitality business which includes the operational requirements of the business, organisational structure in relation to human resource allocation.

This section will include the business plan for Hotel Hilton London which will help it to make sure that it could sustain in the market. With the help of this development plan Hotel Hilton London will assure that it would be able to process the work flow in an effective manner and could manage its functioning in a proper way. With the help of this development plan Hotel will be able to gather all the information regarding the changes it will have to apply and various benefiting aspects that would help it in attaining its targeted objectives. It is necessary that every plan should be developed focusing on the SMART objectives. A SMART plan is a key to success which leads to move on the verge of success and sustainability (Göral, 2014). There are several stages included in plan which will help in developing better understanding with the plan.

Stage 1 Development

Concept

• Idea is to integrate with the travel and Tourism business with the effect of which Hotel Hilton London could expand its business and could attract more customers.
• Objective of Hotel Hilton is to increase its sale and maximise its revenue by 45% percent in 3 years
• Vision of the hotel is to attain the ranking in top ten hotels of the world in 5 years (Fernandes, 2015).

These are some of the SMART objectives of the Hotel that are to be achieved in the adequate time. Hotel Hilton London has prepared these SMART objectives so as to sustain in the market. These objectives will attain by preparing proper set of plan. The objectives that are prepared for Hotel Hilton London are specific, can be measured by comparing the performance and position of the company within the prescribed time, these are the objectives which are attainable by the Hotel are relevant and can be achieved within the time periods which are prescribed by the Hotel Hilton London.

Market research

• It is necessary that the hotel should do the market research before integrating with Jet Airlines. With the help of market research a proper set of information could be gained by the hotel that whether it will be able to attain its objectives in near future or not.
• For market research Hotel Hilton London will first have to identify and define the problem, then it will have to create a statement of research objectives, then it will have to plan the research design, then will have to plan the sample. After that Hotel Hilton London will have to collect the data, and then have to do the analyses of various factors that whether the organisation will be benefited or not, and then it will have to formulate the conclusion that whether to go with the plan or not (Sethuraman, et. al., 2015).

Target Market

• Target market of Hotel Hilton London will be the areas in which Spice Jet is providing services.
• Hotel Hilton will have to segment the customers according to their visits to UK and their priorities that they have set in choosing the services of airlines and hotels.
• Huge amount of funding will be required by Hotel Hilton London which could be borrowed from the investors and selling the share of the business.
• Services provided by Hotel Hilton London after integration will be travelling services from one country to another and accommodation services which will also avail the food to the customers coming to the Hotel.
• It is necessary that both the parties should enter into the agreement and sign of both the parties are necessary so that integration could take place (Aragon-Correa, et. al., 2015).

Stage 2 Design

• After integration it will become necessary for Hotel Hilton London to manage both the brands and should provide a logo that hotel is integrated with Spice Jet Airlines.
• Interior of the Hotel should be designed according to the integration which should show the merger with Spice Jet.
• Attractive offers should be provided by the airlines industry which should benefit them in accommodating in Hotel Hilton London with the effect of which customer flow would be able to manage by both the businesses.

Stage 3 Operations

• Staffing will be the first priority for the hotel as it will have to set a proper setup of the staff members who can manage the work of organisation in a proper and effective manner.
• To manage the staffing it is necessary that Hotel Hilton London should recruit and select people who can manage the work in an effective manner. Hotel will have the recruit and select the people who are refined in managing the people and who could ensure to provide quality services to the customers coming to workplace (Law, et. al., 2015).
• Hotel Hilton London will have to make a proper set of organisational structure so as to ensure that work process could be managed in an effective manner. It will have to design a proper structure of who will manage whom and have to train people how to manage the work according to the requirements of the hotel.

• After preparing a proper organisational structure Hotel Hilton London will have to ensure that it should provide appropriate information to all the staff members regarding the compliance policies of the organisation. It is necessary that all the people working in the organisation should understand what compliance is and which it should not be violated.
• Promoting the services of the hotel is next step (Aragon-Correa, et. al., 2015). It is a duty of marketing department to promote the services in an effective manner and to attract more and more customers towards the organisation.
• Pricing should be kept fair which should involve attractive packages for the people coming via Spice Jet so that integration could work in an effective and efficient manner.

Therefore step by step following up the plan will help in making a successful integration of Hotel Hilton London and Spice Jet Airlines with the effect of which companies will be able to sustain in the market. After working on the plan it becomes necessary that hotel should work on the allocation of human resources development for the tasks to be done by them:

• Management: Management staff will ensure that people working in the organisation could work properly. It is a responsibility of management staff to manage the workflow in an effective manner and to manage the people with the effect of which workflow could be completed in a smooth manner (Martínez, et. al., 2014).
• Front Office: Front office of the hotel should have two staff which should be divided in the morning and the evening shifts so that guests coming in both the shifts can be managed in an effective manner.
• Cleaning: Cleaning is necessary for hotel, it is necessary that the hygiene of the hotel should be managed in an effective manner. Cleaning staff should be trained which should keep the surroundings neat and clean.
• Serving: Serving staff should be properly trained and should provide the information regarding how to great the customers and to take care of them so that they could appreciate the services of Hotel (Sethuraman, et. al., 2015).

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Conclusion

At the end it could be concluded that integration is the aspect which is necessary for the hospitality as well as for the travel and tourism sector. Business indulge in both the sectors should understand the importance of integration and should work upon the aspects which could help then in sustaining in the market. It is necessary that business indulge in both the sectors should coordinate with each other as it will avail an opportunity to expand in the market and will help in ensuring that the business could move on the verge of success. With the help of integration business will ensure that they will provide quality service to the customers and will be able to ensure that they will help the economy of the country. Contribution to the economy of the country will help in growing the business which will help in moving on the verge of ultimate success.

References

Aragon-Correa, J.A., Martin-Tapia, I. & de la Torre-Ruiz, J. 2015, "Sustainability issues and hospitality and tourism firms’ strategies: Analytical review and future directions",International Journal of Contemporary Hospitality Management, vol. 27, no. 3, pp. 498-522.
Crotts, J.C., Mason, P.R. & Davis, B. 2009, "Measuring Guest Satisfaction and Competitive Position in the Hospitality and Tourism Industry: An Application of Stance-Shift Analysis to Travel Blog Narratives", Journal of Travel Research, vol. 48, no. 2, pp. 139-151.
Fernandes, T. 2015, "How can we encourage travel and tourism is ASEAN?", International Trade Forum, , no. 2, pp. 34.
Göral, R. 2014, "Turizm Sektöründe Stratejik Kriz Yönetimine Iliskin Bütünsel Bir Çerçeve/A Holistic Framework Related To Strategic Crisis Management In Tourism Sector", Selcuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, , no. 32, pp. 89.
Law, R., Leung, R., Lo, A., Leung, D. & Fong, L.H.N. 2015, "Distribution channel in hospitality and tourism: Revisiting disintermediation from the perspectives of hotels and travel agencies", International Journal of Contemporary Hospitality Management, vol. 27, no. 3, pp. 431-452.
Lee, B.C., Cho, J. & Hwang, D. 2013, "An integration of social capital and tourism technology adoption—A case of convention and visitors bureaus", Tourism and Hospitality Research, vol. 13, no. 3, pp. 149-165.
Martínez, P., Pérez, A. & Rodríguez del Bosque, I. 2014, "Exploring the Role of CSR in the Organizational Identity of Hospitality Companies: A Case from the Spanish Tourism Industry", Journal of Business Ethics, vol. 124, no. 1, pp. 47-66.
Popescu, L., Iancu, A., Popescu, V. & Vasile, T. 2013, "Human resource management practice in the hospitality and tourism industry", Economics, Management, and Financial Markets, vol. 8, no. 4, pp. 160.
Sethuraman, R., Sasiprabha, T. & Sandhya, A. 2015, "An Effective QoS Based Web Service Composition Algorithm for Integration of Travel & Tourism Resources", Procedia Computer Science, vol. 48, pp. 541-547.
Yap, G. 2011, "A PANEL COINTEGRATION ANALYSIS OF ECONOMIC INTEGRATION AND TOURISM EXPORTS IN ASEAN COUNTRIES", International Journal of Business

This Hospitality Provision in Travel & Tourism Sector Assignment will help in developing the understanding with the fact that merger will help in expanding the business and will help in attracting more customers towards the business, We are posting Locus units solutions so scholars can explore the our Assignment Help in UK and get review the quality of our work.