Delivery in day(s): 5
Diploma in Travel and Tourism
Unit Number and Title
Hospitality Provision in TT Sector
Not a sole glossary can describe the caption of hospitality at this point of time. There are different approaches used by hospitality industry to explain this term. Few explained the typical features of tangibility and intangibility in its services whereas other demonstrated the industry by the involvement of the sponsors in terms of their conjoint profits and its effects on the economy and society. In general terms, hospitality can be described as a deed of generosity where people are welcomed and looked after for their fundamental requirements mainly in terms of food, beverages and lodgings. An instant statement of hospitality is it is the correlation between the host and the customers or strangers where the host. Hospitality industries refer to those associations that offer services such as food, drinks and lodgings to those people who are travelling. To work in a hospitality industry is a challenge. It is much more complex in comparison to other sectors. It is always customer oriented and holds a substantial importance in offering quality products and services to customers. The hospitality industry also includes subsequent associations such as operation, maintenance, advertising, human resource and advertising. In hospitality provision in TT sector assignment assignment, we will be studying about the scope, behavior and structure of the hospitality industry and how it functions. To understand the assignment better we have chosen Premier Inn our organization.
An outline of the chosen organization
The largest hotel class in United Kingdom, Premier Inn is a top rated hotel chain. It has 700 hotels with 50000 rooms. They operate in number of places which includes city centers, airports and country side. Founded in 1987, Premier Inn was entrenched by Whitbread in order to tussle with Travelodge. The headquarters of this hotel chain is situated in Dunstable, United Kingdom. In 2004, Whitbread purchased Premier Lodge and consolidated it with Travel Inn to make a new business carrying the name ‘Premier Travel Inn’ which was abbreviated to ‘Premier Inn’. Whitbread earns total profit of 70 percent from Premier. Ireland, United Arab Emirates, Thailand, Singapore, Indonesia and India are the other locations where Premier Inn operates. Talking about its products and services, Premier Inn promises to serves the best of the bests. The price rate is reasonable with great hospitality. They offer luxury equipments for the comfort of the customers, best multi cuisine food and friendly staff. Premier inn envisions offering authentic experiences to customers and a lifetime unforgettable memories with them. (Premier Inn, 2016)
With the rise in globalization, when we compare hospitality industry to other operational industries we see that hospitality industry has gain ample importance in global economy comprising one third of total service trade. According to survey, there has been a significant rise of 4.3 per cent in international tourism from 1995 to 2008. (GDFHTS, 2010) There is a close connection between hospitality industry and the travel and tourism sector. There are numerous branches which come under hospitality industry such as hotels, motels, catering companies and transportation. The characteristics features such as hotel ratings, location and size of the hotel determines the selection of the hotel by the customers.
Hospitality industries like Premier Inn have two prominent business divisions:
Hospitality organization plays an important role in rendering services to travel and tourism sector. People tend to spend a large portion of bucks on hotel either for business tour or for holidays. Since they pay huge amount for luxury, they expect prime services in return. In order to make their customers a repetitive one, tour operators tries to provide best travel. As an HR manager, the three things that I should always kept in mind while dealing with customers are:
Both travel and tourism sector and hospitality industry operates independently but both are interlinked in one way or another. (Tourism and hospitality studies, 2013)
Interrelationship between tourism and hospitality industry:
In order to improvise the products and services being provided to customers it is important to have integration system in hospitality industry. The adoption of integration system causes major influence on business and further amends the standard of the company or an organization. An operative integration system can aid in effective and smooth functioning of business which provides business a competitive advantage over minimized costs with the opposition. Integration first gained its importance in early 1900s when businesses were trying to cope up with the scale of retrenchment.
In terms of development now days, hospitality industry is considered as the biggest of the all sectors. Many different reasons have been taken into consideration for the success of this sector. One of them happens to be the advancement that has taken around the globe and the awareness among the people worldwide. People today have curiosity to discover the world in terms of travel and so their demands are high from the organizations that offer products and services in the tourism and travelling. This has directly led to the increased demand and supply of hospitality industry as it is the prime source of tourism and travel all together. It offers a wide range of services to the customers like lodgings, food and beverages , transport facilities, hotels etc. It is even adopted by the UK’s largest hotel brand Premier Inn. It has 50000 hotel rooms with more than 700 hotels worldwide. It has launched its own site in order to book rooms or to make reservations at hotel. It is a sole operator with no linkage to any travel and tourism agency. It has expanded its business a lot in past few years and is still expanding. It follows horizontal integration system in which the company wants to increase the customer base and multiplies profits.
Branding: Progress of the hospitality industry relies on the brand approaches implemented by the management and how effectively they are able to send their messages to markets. It is critical that customers enable to link themselves with the brand names. For example ‘Premier Meetings’ is a name under the brand ‘Premier Inn’ where all the business meetings and conferences are held. It has launched ‘Hub’ for the customers who wants style, comfort and fun simultaneously.
Increased globalization: One of the factors that concerns hospitality industry is globalization. The development of companies cannot take place if they do not invest outside the boundaries of its own country. Premier Inn has its hotels not only in UK but also in various parts of world such as Ireland, India, and Singapore etc. Hospitality industries need to think about the implications of the globalization in which they tend to operate. Eventually, there will be more competition in future from across the borders. (Jing, 2016)
There are numerous points and effects of integration in hospitality industry. It provides various insights to the management about the new market trends. The dynamic environment of the business needs the integration in vital way to prioritize and arrange the business. It plays a crucial role for managers for the smooth functioning of the business. Most of the requirements of the business are provided by integration. It improvises the current organizational structure and behavior of the business. The effect of integration on business is as follows:
Making changes in structure of business functioning can have following consequences on the business organization. It can be in the form of profits by altering the organizational structure.
The procedure of the integration can be made impeccable by adapting new strategies and connecting it with the duties of the company. There should be modernization in integration process at every stage.
All the problems of business can be solved at the first stage of investment with the help of integration system. Employees’ training and the management of the resources can be groomed easily with the help of integration. There are many advantages of integration such as the low operational costs and flexible working environment. With the help of IT system managers can obtain information related to business. Integration system has a great impact on the businesses and thus contributes to the success of the company. Integration system is important for the steady functioning of the company. In the hospitality industry like Premier Inn, employees too can get important information through effective integration system just like managers. Integration system helps in viewing the well structured plan and introduction of new strategies in the company.
The integration system, be it vertical or horizontal, has a huge impact on customers and their choice. Instead of buying various products and services at high price, integration system enables them to buy the whole package under one roof at an affordable price. The existence of integration system in various businesses in distinct level of distribution chain makes it convenient for the customers to make healthy links with the company as it provides all kinds of products and schemes and become their repetitive customers. On the other hand, horizontal integration system supports the company to enhance its position at the international level. They offer additional services to the customers at a reasonable package.We can conclude by saying that integration, either it is horizontal or vertical, proves to be effective for the customers as it provides customers with variety of alternatives. The management of the organization becomes superior and is capable of serving its customers with additional choices at considerate packages and costs. Integrated strategic technique not only proves to be advantageous for the management but also for the employees, customers, shareholders and distributors.(Gomez,2016)
Planning the development of hospitality industry
In this task we will make a plan for the development of the strategy which is related to hospitality. We have already learnt about the structure and behavior of hospitality industry, size, location, concepts, perception, branding, products and services offered,
This task will help us to develop a plan for the development of the projects which are based on hospitality. Earlier in the task we learned about concepts, development, objectives, general idea, target market, market research, funding, scale, location, size, nature, investments, licensing, products and services, ambiance, culture, brand, pricing etc. All these factors make a hospitality work. Hence, before starting a new hospitality these things should be kept in mind in order to achieve success. Future planning is very necessary for every hospitality industry so that all the strengths and weaknesses are known in advance.
One thing we know that surely happens in the world of business is the rapidly changing dynamic environment. In order to keep the pace with these changing trends, companies have to make sure that along with sustaining the market policies they are also capable of adapting these changes in trends. There is a simple concept of every business organization that is to offer high class services to customers. To attract more and more customers companies have to make sure that they bring variety in their products to keep the interests of the customers in their brand. This happens in hospitality industry also as it is the most developed sector and it has always more to offer to customers with their increasing demands. The target market that we have chosen is associated with middle class and has bounded earnings. Such customers are not provided with luxurious facilities as they do not have enough money to afford expensive restaurants and hotels. But the company will make sure that there will no compromise regarding quality and quantity of products and services. Strategies and policies are made concerning the demand and desire of the middle class people. As they do not have enough to spare, our target is to offer them services at an affordable price. According to the survey, the graph of average class families is higher than that of rich families in terms of population. The hospitality industries have to keep in mind the needs of all the types of customers in order to attain desirable profits. The main objective of business is to provide best services in such a manner that the customers are satisfied and they get adequate profits. The hospitality industry envisions targeting average class people as they constitute the largest of crowd.
To make this perception more bright and clear, we have chosen Premier Inn hotels based in UK. One of the major hotel brands in UK, Premier Inn offers first class hotel facilities to its customers at a reasonable price. Keeping in mind the needs of the people of all the classes, this hotel provides free Wi-Fi services, free stay for kids, quality food at feasible rate and an affordable hotel rooms with best holiday packages. It facilitates qualitative services at the cheapest offers. It also makes customers’ stay memorable and provides exotic experiences. Thus, we can conclude that middle class holds an important place in hospitality sector for the company to grow and keep its position stable in the market. (Gomez,2016)
Development of any business depends on the factors like what it visions to achieve, what is the idea behind the concept and what objectives it aims at. As mentioned previously, every business organization’s motives is to offer standardized services to its customer at the reasonable price. Adding to this, the advancement and locality also plays an important role because the place where capital will be invested should be well elaborated and people should be aware of that area. Markets should be well analyzed which consist of the area of investment, size and structure of the company, funds allocation, target markets etc, offering best services and goods, keeping a check on licensing which constitutes membership, qualitative and quantitative aspects etc. decisions should be made in regards with this context keeping in mind the requirements of average class people. To activate the strategy, company appoints a management team who impose these plans efficiently. Innovation of new ideas enables organization to introduce new goods in the market that will persuade folks to buy the products which will aid the company to maximize its profits and will help in maintaining the pace to cope up with the stimulation of the work environment. It is necessary to pre plan the whole idea of business operation before bringing it to action. All the criteria related to business should be checked such as allocation of funds, assets required etc. They need to estimate the profit and cash flow they will obtain in the end (Becker, 2013). Considering the project we proposed in the last section of this assignment, the capital required will be less as compared to normal amount as per our assessment. Since we are considering the middle class people, we need to make sure that they are not provided with extravagance services but there should not be any compromise with qualitative and quantitative measures in relation to arrangements for customers. Premier Inn is a well structure and appropriately organized hospitality industry, the allocation of funds can be accumulated from the deposits that company might have saved for the future projects. The other way of compiling resources can be done from the stipulation that will be rendered by the customers and the final payments they will give for the package they adopted. Every organization has some sponsors who give commission to the organization for advertising their products. Similarly, Premier Inn gets commissions from its sponsors and that’s how they get funds.
Factors regarding the development of business are as follows:
Stage 1: Development
The idea of business plan consists of the hotel arrangements for the medium class people. Although they will not be provided with high class luxurious suites but there will be no compromise with offering the quality services. The plan will be made in context with the needs and wants of the common people. Since it has been targeted for middle class, the hotel introduced two types of packages- gold package and silver package. The gold package has relatively higher rates and more services than silver packages.
Stage 2: Design
The design of the hotel should fascinate more customers. The package should be attractive and attention seeker for the customers. Since the hotel as sustained the good position in the market we just have to focus on the upgradation in order to provide quality services to the people. Design is further subcategorized into different parts:
Stage 3: Operation
In order to convert the plan into action, it is necessary for the management at hospitality industry to form a pricing policy so that the people think the services are over rated. As we have developed a plan for the middle class people we need to keep in mind that the prices are moderate. As we have set two packages, gold and silver, there will be a slight difference in prices and services. The customers adopting the gold packages will be provided deluxe rooms with entertainment facilities like television where as the customers adopting silver packages will be given standard accommodation with no entertainment facilities. The business of hospitality industry relies on seasonality. Therefore we can find temporary staff more than the permanent staff in this sector. Keeping the huge staff is of no use when the customers are less. Customer flow depends on seasons. Simultaneously the management should ensure that the talented employees stay as long as possible.
In this assignment, we have studied about the inter relationship between tourism and travel sector and hospitality industry. With the increase in marketing globalization , this sector has raised the bars of the expectations of the people as it is the most developed and demanding sector in the economies of the world. The sustaining capacity of hospitality industry is much more than other sectors as it have faced many challenges of the changing market trends over the years. The introduction to technological innovations has made it easier for customers to experience what the world has to offer. Basically there are two parts of hospitality industry – integration and industrialization. Integration is the major component in the growth and profitability of the tourism industry. The hospitality and tourism industry has somehow enhanced each other and is responsible for each other’s evolution.
Becker, E., (2013), Overbooked: the exploding business of travel and tourism, [Book], Ist Edition, Simon & Schuster Publisher, [Accessed: 17 June, 2016]
Cummings, P. R., Kwansa, F. A., and Sussman, M. B., (1998), The Role of the Hospitality Industry in the Lives of Individuals and Families, [Books], Haworth Press,[Accessed: 15 June, 2016]
GDFHTS, (2010), Developments and challenges in the hospitality and tourism sector, [PDF], Available: http://t20.unwto.org/sites/all/files/docpdf/gdfhts-r-2010-08-0058-1l-en.pdf[Accessed: 17 June, 2016]
Gomez, A., (2016), Principles and practices of hospitality and tourism, [Book], Willford Press, [Accessed: 16 June, 2016]
Jing, W., (2016), issues, challenges, and trends hospitality industry is facing,[Article], Available: http://ahrmhospitality.com/articles/industry-articles/32-issues-challenges-and-trends-that-the-hospitality-industry-is-facing [Accessed: 17 June, 2016]
Premier Inn, (2016), Why We Are Premier?, [Online], Available: http://www.premierinn.com/gb/en/why.html?intcmp=nav [Accessed: 15 June, 2016]
Tourism and Hospitality Studies (2013), Introduction to hospitality, [PDF], Available: http://www.edb.gov.hk/attachment/en/curriculum-development/kla/pshe/nss-curriculum/tourism-and-hospitality-studies/Hospitality_English_21_June.pdf[Accessed: 16 June, 2016]